U.S. Bank Teams with Stellar for Cutting-Edge Stablecoin Test
- U.S. Bank began testing the Stellar network to make its own stablecoins.
- PwC gives advice, and the Stellar Development Foundation (SDF) backs the technology.
- Make programmable money that is safe, legal, and works like bank services.
- Stellar has quick settlements (3 to 5 seconds), low fees, and high reliability.
U.S. Bank, one of the biggest banks in the U.S., has started a pilot program to see how well it can issue stablecoins on the Stellar blockchain. Stablecoins are digital coins that are linked to real money, like the U.S. dollar, so their value stays the same.
This change is meant to create “programmable money” that banks can control with built-in rules to keep it safe and legal. You can think of it as digital cash that knows who owns it and can fix mistakes if they happen.
Stellar’s system is made for finance and has been up almost all the time for over 10 years. Transactions are done in seconds and cost less than a penny. It’s great for sending money across borders quickly and without high fees.
Mike Villano, a high-ranking official at U.S. Bank, said, “We have to think about protections around know-your-customer, the ability to unwind transactions, and the ability to claw back transactions.” He praised Stellar for being ready with these features.
PwC is a big consulting firm that helps make sure that everything is up to the high standards that treasurers need to manage company money. They focus on things like quick payments in places with hard-to-use currencies. The SDF, which runs Stellar, is excited about the trust from a big bank. José Fernández da Ponte from SDF said: “When you are doing mission-critical systems… you need to make sure that your blockchain is going to be there.”
