🏦 U.S. Bank Tests Its Own Stablecoin on Stellar — A New Threat to USDT and USDC?

The fifth-largest U.S. bank is piloting a regulated stablecoin with PwC and the Stellar Development Foundation — potentially rewriting the future of compliant digital dollars.

April 2025 · By ATH Editorial Team

U.S. Bank — America’s fifth-largest bank — is quietly testing the kind of stablecoin that could disrupt the entire industry.

The pilot is being built on Stellar and designed to combine:

Unlike existing stablecoins, this model includes transaction reversals — a feature institutional clients have demanded for years.

PwC summed it up clearly:

“The industry has moved beyond theory; now it’s about proving blockchain’s value under strict oversight.” — Kurt Fields, PwC

Stellar (XLM) has quietly become a favorite for regulated financial experiments thanks to:

For U.S. Bank, Stellar provides a ready-made infrastructure for institutional-grade tokenization and payments.

PwC’s involvement signals something important: this isn’t a crypto experiment — it’s a regulatory blueprint.

The pilot could influence future U.S. stablecoin frameworks by proving:

U.S. Bank isn’t trying to compete with Tether or Circle directly — not yet.

But ATH.LIVE analysts note that a bank-issued, fully compliant stablecoin with built-in reversibility could pressure existing players to evolve.

If the pilot succeeds, expect more banks to join — and potentially the first wave of institutional stablecoin competition.

This isn’t just a U.S. Bank experiment — it’s a signal.

Traditional finance is no longer avoiding crypto. It’s meeting it halfway.

A regulated, bank-issued stablecoin could:

For the broader market, this is a turning point where blockchain stops being speculative — and starts being infrastructure.