The American bank US Bank, the fifth largest in the country, announced that it is testing the issuance of a stablecoin on the Stellar network that allows freezing and reversing transactions directly on the network.
US Bank (subsidiary of US Bancorp) develops the project together with Stellar Development Foundation and the professional services firm PwC, according to revealed on US Bank’s Money 20/20 podcast.
“One of the advantages of the Stellar platform, as we researched and developed it, was discovering that at their base operational layer, they can freeze assets and reverse transactions,” said Mike Villano, senior vice president of innovation at US Bank, during his conversation on the future of finance.
This native reversal function, unusual in public cryptocurrency networks, appears to be one of the biggest attractions for the bank, which has more than 2,000 branches and millions of retail, business and institutional clients.
The pilot benefits from the new regulatory framework created by the GENIUS law approved in July 2025 and which enables traditional banks like US Bank to issue stablecoins under federal supervision.
This move by US Bank reflects a growing trend among global financial institutions to launch their own stablecoins and compete with issuers such as Tether (USDT) and Circle (USDC), which dominate more than 70% of the market of some $310 billion in circulation.
As CriptoNoticias recently reported, ten large banks, including Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, Barclays and Santander, formed a consortium in October to explore a joint stablecoin backed 1:1 by fiat currencies from G7 countries, such as the dollar or the euro.
This project, which unites ten important financial institutions in the world, is in the preliminary phase, prioritizes regulatory compliance and seeks to offer faster payments using cryptocurrency networkssimilar to European initiatives such as Caixabank, ING and UniCredit for a stablecoin in euros.