U.S. Bancorp To Launch Its Own Stablecoin

U.S. Bancorp, the fifth largest lender in America, is set to launch its own stablecoin. The Minneapolis-based bank recently completed a cross-border payment via the new stablecoin, USBDC, and is now exploring broader uses for the cryptocurrency. USBDC is pegged one-for-one to the U.S. dollar. The bank's live pilot demonstrates its ability to accelerate global cash management and money movement capabilities, according to a statement from U.S. Bancorp.

The lender is considering using USBDC for cross-border treasury operations, liquidity management, and collateral movement. U.S. Bancorp has not disclosed when the stablecoin will be made available to clients or a timeline for a commercial rollout of the cryptocurrency. This move comes as stablecoins pegged to fiat money gain popularity among traditional financial institutions for payments, remittances, and treasury management.