U.S. Bank Tests Dollar Transfer on Stellar with Reversible Token

U.S. Bank performed a live pilot on Wednesday, moving dollars from North America to Europe on the public Stellar blockchain. The bank used a proprietary token, USBDC, which is not available to customers.

Test Details

The pilot is described by the bank as a test of its global cash management capabilities. The transaction was executed on Stellar, a blockchain whose native token XLM ranks 19th by market value.

Reversible Features

Unlike most stablecoins, USBDC includes a “kill switch” that allows the issuer to freeze accounts and destroy tokens held in other wallets. The bank demonstrated that it could create the token, cash it out, freeze it, and reverse the transfer.

Industry Context

While a separate consortium of 21 banks and asset managers plans to launch a shared U.S. dollar‑pegged stablecoin in 2027, U.S. Bank opted to test its own solution. The bank holds $683 billion in assets, ranking sixth among U.S. commercial banks.

Market Reaction

Stellar’s XLM price showed minimal movement after the announcement, trading near $0.19.