Market Watch

U.S. Bank Tests Custom Stablecoin Issuance on Stellar Network

U.S. Bank, the fifth-largest commercial bank in the U.S., has started testing the issuance of custom stablecoins on the Stellar network, according to a Tuesday announcement. Teaming up with PwC and the Stellar Development Foundation (SDF) for the initiative, the bank aims to explore whether a traditional bank can safely issue programmable money on a public blockchain, according to the blog post.

U.S. Bank’s digital asset head, Mike Villano, highlighted in the blog post Stellar’s built-in ability to freeze or unwind transactions as a key feature that aligns with regulatory and compliance requirements, such as Know-Your-Customer (KYC) and transaction reversibility, critical features if banks are to adopt blockchain rails for mainstream use.

Stablecoins, which are cryptocurrencies with prices anchored to a fiat cy like the U.S. dollar, are gaining traction as potential tools for faster, cheaper payments across borders. Financial institutions and global businesses are increasingly explore embedding them into their operations and treasury management to cut costs. Cross-border stablecoin payments could hit $1 trillion in annual volume by the end of the decade, Keyrock projected.

Terron Gold

Recent Posts

Cypherpunk Launches World’s Largest Zcash Mining Fleet in $33 Million Winklevoss Deal

Cypherpunk Technologies is expanding its massive bet on Zcash by launching what it calls the…

5 days ago

MapleStory Universe Launches AI Game Jam With $15,000 in NXPC Prizes

MapleStory Universe is putting artificial intelligence in the hands of game creators with the launch…

6 days ago

Kalshi Pushes Beyond Prediction Markets With Copper Perpetual Future Filing With CFTC

Kalshi is making another major move beyond prediction markets, filing with the Commodity Futures Trading…

6 days ago

Coinbase Brings 50x Crypto Perpetual Trading to Base App Through Hyperliquid

Coinbase is bringing high-leverage decentralized derivatives directly into its Base App through an integration with…

6 days ago

Hong Kong Puts First Regulated Stablecoin to Work in Insurance and $49 Billion UAE Trade Market

Hong Kong's first regulated Hong Kong dollar stablecoin is moving beyond testing and into real-world…

6 days ago

Fake Trezor, Ledger and Exodus Apps Target Crypto Users in Massive Seed Phrase Scam

Cybersecurity researchers at Rapid7 have uncovered a sophisticated crypto fraud operation that used nearly 885,000…

7 days ago