U.S. Bank Taps Stellar Network for Custom Stablecoin Trial, Backed by PwC and SDF
U.S. Bank has begun testing customized stablecoin issuance on the Stellar blockchain, marking probably the most progressive strikes but by a serious U.S. monetary establishment towards programmable digital cash.
The improvement was introduced in the course of the financial institution’s Money 20/20 podcast episode, The Tokenized Future of Banking, that includes leaders from U.S. Bank, SDF, and PwC discussing how tokenization will reshape the way forward for monetary providers.
The initiative exhibits a rising shift amongst main monetary establishments towards programmable cash—digital belongings constructed with safeguards and compliance options required by conventional banking.
Why U.S. Bank Chose Stellar for Stablecoin R&D
During the podcast, Mike Villano, Senior Vice President and Head of Digital Asset Products at U.S. Bank, emphasised that security and management are non-negotiable when bringing tokenized belongings into the banking atmosphere.
“For financial institution clients, we’ve got to consider protections round know-your-customer, the power to unwind transactions, the power to claw again transactions,” Villano mentioned.
“One of the good issues concerning the Stellar platform, as we did extra analysis and improvement on it, was studying that they’ve the power at their base working layer to freeze belongings and unwind transactions,” Villano added.
Stellar says its structure was constructed particularly for issuing belongings and transferring cash at scale. With 99.99% uptime over greater than a decade, quick 3–5 second settlement, and transaction charges that value a fraction of a U.S. cent.
Institutional Confidence in Stellar’s Reliability
José Fernández da Ponte, President and Chief Growth Officer on the Stellar Development Foundation, identified that institutional-grade reliability is the inspiration of Stellar’s attraction.
“When you might be doing mission-critical programs, when you find yourself doing monetary providers, and you might be transferring customers’ cash, you should be sure that your blockchain goes to be there,” he mentioned. “We are honored to have the boldness of U.S. Bank and our companions at PwC. We take that confidence and that belief very, very significantly,” mentioned Villano.
ECB Warns Stablecoins Are Rising Fast With Spillover Risks
On Monday, the European Central Bank (ECB) warned that the speedy growth of stablecoins—regardless of their still-limited footprint within the euro space—poses emerging financial-stability risks, particularly as interlinkages with international markets deepen.
The findings come from the ECB report “Stablecoins on the rise: still small in the euro area, but spillover risks loom,” ready by Senne Aerts, Claudia Lambert, and Elisa Reinhold, which examines structural vulnerabilities, use circumstances, and cross-border dangers tied to the accelerating stablecoin ecosystem.
According to the authors, the mixed market capitalisation of all stablecoins has surged previous $280 billion, reaching an all-time high and accounting for roughly 8% of the overall crypto-asset market. Two U.S. dollar-denominated stablecoins dominate overwhelmingly: Tether (USDT) with $184 billion and USDC with $75 billion.
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