U.S. Bank announced the completion of a live pilot transaction using USBDC, its proprietary U.S. dollar-backed stablecoin, to process a cross-border payment between bank entities in North America and Europe.

The transaction was executed on the Stellar blockchain and tested minting, payment redemption, freezing, and clawback capabilities. The pilot also validated U.S. Bank's internally developed Digital Asset Platform, which the bank describes as the foundation for issuing, managing, and moving tokenized assets between traditional banking infrastructure and blockchain networks.

U.S. Bank, a subsidiary of U.S. Bancorp (NYSE: USB), characterized USBDC as one of the first bank-issued stablecoins deployed on a public blockchain. The bank said the pilot maintained integration with its core finance, risk, compliance, and operations infrastructure.

"This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities," said Gunjan Kedia, chairman and chief executive officer at U.S. Bank.

The initiative builds on an existing relationship between U.S. Bank and the Stellar Development Foundation. Future applications under exploration include liquidity management, collateral mobility, and cross-border treasury operations, according to the press release.