US Bancorp is the latest major financial institution to explore blockchain technology, launching a stablecoin pilot on the Stellar network. The bank is collaborating with consulting firm PricewaterhouseCoopers (PwC) and the Stellar Development Foundation on the initiative.

Stellar Chosen for Regulatory Compliance

The decision to build on Stellar was heavily influenced by the network’s native features, which are critical for regulated entities. Mike Villano, the head of digital assets products at US Bank, noted that the platform’s ability to freeze assets and unwind transactions at its base layer was a key consideration. He explained that these controls are essential for customer protection.

While this logic could be programmed into a smart contract on other networks, Villano found it compelling that Stellar includes this functionality at its core protocol level. He emphasized that the pilot demonstrates the practical application of programmable money in a highly regulated environment, stating that “institutions have arrived” and are ready to show how the technology benefits both banks and their clients.

Exploring Tokenized Assets

Beyond the stablecoin project, US Bank is also conducting research into tokenized assets. According to Villano, the bank is investigating how the core benefits of blockchain—such as speed, 24/7 availability, and efficiency—can be applied to other asset classes. The bank is reportedly excited to see where this research leads.