US Bancorp executes first live transaction using dollar-backed USBDC stablecoin

Sept 9 (Reuters) - ‌U.S. Bancorp ​said ​on Wednesday it completed a live pilot transaction using ‌its proprietary U.S. dollar-backed stablecoin, USBDC ⁠as lenders race to develop blockchain-based ‌payment networks with stablecoins ‌gaining wider adoption.

Here are some more details:

• The pilot involved a ​cross-border transfer between U.S. bank entities in North America and ⁠Europe on the Stellar blockchain.

• The bank said it ​tested capabilities including minting, redemption, freezing and clawbacks through its ​digital asset platform.

• Stablecoins ‌are used to move money around the world in ⁠the form of cryptocurrency, and are mostly used in crypto trading.

• The ⁠move follows broader industry efforts to embrace ​stablecoins, with Goldman Sachs, Bank of America, Citigroup and Wells Fargo among the banks ‌planning to create a company this year to issue ‌a cryptocurrency pegged to the ⁠dollar in the ‌first half ​of 2027.

(Reporting by Pragyan Kalita in Bengaluru; Editing by Devika ‌Syamnath)

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