U.S. Bancorp To Launch Its Own Stablecoin

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.

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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.