U.S. Bancorp — the parent company of U.S. Bank — is taking a bigger step into digital assets, launching a pilot program that explores stablecoin payments and custody services using the Stellar blockchain.
Mike Villano, the bank’s senior vice president and head of digital asset products, revealed in a recent podcast that the institution has been testing live transactions. Stablecoins, he said, are simply “another way to move money on a blockchain,” and the bank wants to better understand which real-world use cases will generate customer demand.
The pilot program, first teased by U.S. Bancorp President and CEO Gunjan Kedia during an October earnings call, includes two initial focus areas: custody solutions and stablecoin-based payments. Kedia noted that while demand for payments has been quieter so far, the bank believes the technology could eventually unlock faster and more efficient settlement options.
Return to Crypto After Regulatory Shift
U.S. Bancorp has long been considered one of the more crypto-friendly banks in the United States, though its journey hasn’t been without setbacks. It paused its Bitcoin custody service for nearly three years after capital requirements and oversight concerns from the Federal Reserve made digital asset services more difficult.
But the regulatory landscape is shifting. A more crypto-open environment under the Trump administration — including the repeal of the SEC’s controversial SAB 121 accounting rule and progress on industry-friendly legislation like the GENIUS Act — has cleared a path for major banks to re-engage with blockchain services.
Just last month, U.S. Bank reinstated its institutional Bitcoin custody offerings. Now, the company is looking beyond BTC toward stablecoins as the next step in its digital strategy.
Why Stellar?
Villano said Stellar was selected specifically for its finance-focused architecture and the ability to offer security and compliance features at the base layer. These include issuer-controlled safeguards like freezing or even reversing transactions — tools banks view as essential when onboarding large-scale clients.
“Often, you might write that into the business logic itself,” Villano explained, “but in this instance, you can do it at the core blockchain layer.”
Stellar currently ranks 19th among stablecoin blockchains, with around $212 million in assets circulating on the network. It has been active in cross-border payments and remittances since 2014.
A Broader Trend Among Major Banks
U.S. Bancorp isn’t alone. Traditional financial institutions are increasingly exploring stablecoin opportunities — especially after the U.S. passed legislation creating clearer pathways for compliance.
Citibank is already working with Coinbase as its operational partner amid plans to launch its own stablecoin. Goldman Sachs and Bank of America recently joined Citi in a consortium to test institutional use cases.
The momentum isn’t limited to the U.S. — nine major European banks launched a similar initiative in September to research euro-denominated stablecoins and licensing requirements.
With the global stablecoin market expected to surge in the coming years, U.S. Bank’s move signals a clear intention: major banks want a stake in the future of digital payments — and they’re starting to move fast.
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