U.S. Bancorp – one of the largest banks in the U.S. – has just begun testing its own stablecoin on the Stellar (XLM) network, marking an important step in its strategy to expand into digital assets.
According to Bloomberg, the bank has established a dedicated digital asset and remittance department, focusing on researching new payment models.
Mike Villano, Director of Digital Asset Products, stated that the ability to freeze assets on Stellar is a key factor that helps the bank manage risks when operating the stablecoin.
This move comes amid a strong increase in demand for stablecoins from financial institutions. Citigroup has recently chosen Coinbase as its partner for stablecoin deployment, indicating that organizations are accelerating their adoption of blockchain.
Stellar has become an attractive choice due to:
Effective asset control (asset freeze)
Optimized for cross-border remittances
Support for asset tokenization for organizations
According to the Stellar Development Foundation, the network achieved $32 billion in payments over the past year, with 9.8 million active wallets, reinforcing its position as a reliable blockchain infrastructure for banks.
U.S. Bancorp's participation indicates that the institutional stablecoin race is entering a phase of acceleration – and Stellar is emerging as a strategic choice.
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