U.S. Bancorp To Launch Its Own Stablecoin

(MENAFN- Yolo Wire) U.S. Bancorp (NYSE: $USB), the fifth largest lender in America, is preparing to launch its own stablecoin.

The Minneapolis-based bank said that it has completed a live cross-border payment via the new stablecoin and is now weighing broader uses across its payments business.

The stablecoin is called USBDC (CRYPTO: $USBDC) and is pegged one-for-one to the U.S. dollar. The cross-border payment was completed between the U.S. and Europe, said the bank.

The move by U.S. Bancorp comes as stablecoins tied to fiat money grow in popularity among traditional financial institutions.

Dollar-pegged stablecoins are increasingly being used for payments, remittances, and treasury management, offering faster transaction speeds and around-the-clock settlement.

"This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities," said U.S. Bancorp in a written statement.

The lender added that it is exploring several uses for the new USBDC stablecoin, including cross-border treasury operations, liquidity management, and collateral movement.

U.S. Bancorp did not say when the new stablecoin could become available to clients or give a timeline for a commercial rollout of the cryptocurrency.

News of U.S. Bancorp's stablecoin comes a week after 21 financial institutions, including Bank of America (NYSE: $BAC) and Goldman Sachs (NYSE: $GS), announced plans to form a company to issue stablecoins for payments and digital asset transactions.

The consortium expects to introduce its first dollar-pegged stablecoin in 2027.

USB stock has risen 27% over the last 12 months to trade at $62.49 U.S. per share.

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