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US Bank Tests Stablecoin on Stellar for Cross-Border Payments

A U.S. bank has piloted its proprietary stablecoin, USBDC, in a cross-border transaction on the public Stellar blockchain, moving funds between its North American and European entities. The test marks a step toward using blockchain for efficient international payments.

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AI take

This pilot is notable because it moves a bank-issued stablecoin beyond the theoretical, showing a real intra-bank settlement on a public chain. It signals growing institutional comfort with Stellar's infrastructure for corridor payments, which could pressure legacy correspondent banking rails. The key test is whether this remains a controlled experiment or scales to production volumes, where regulatory and liquidity considerations will determine broader adoption.

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