American Bank tests the issuance of personalized stablecoins on the Stellar blockchain network.
The bank is collaborating on this project with the Stellar Development Foundation (homeless) and PWCthe organizations said in a Tuesday (November 25) blog post.
“It’s another way of moving money on a blockchain, and we see blockchain as an alternative payment method, and we’re very interested to see what use cases will come out of it and which customers are most interested in it.” Mike Villanosenior vice president and head of digital asset products at US Bank, said in a statement video included with the message.
Villano said in the post that Stellar has the necessary protections for a project like this.
“For bank customers, we have to think about other protections around knowing your customers, being able to unwind transactions, being able to recover transactions, and one of the benefits of the Stellar platform, as we did more research and development, was learning that they have the ability at their base operational level to freeze assets and unwind transactions,” Villano said.
Stellar was designed to meet the needs of regulated institutions with things like 99.99% uptime over a decade, billions in annual payment volumes, built-in asset controls and 3-5 second settlement, according to the publication.
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“When you’re running mission-critical systems, when you’re offering financial services, and when you’re moving customer money, you need to make sure your blockchain is going to be there.” José Fernández da Pontepresident and chief growth officer at SDF, said in the post. “We are therefore very honored to benefit from the trust of US Bank and our partners at PwC. »
CEO of Bancorp in the United States Gunjan Kedia said in October that the bank was considering testing stable coin transactions this year via partnerships.
When it comes to stablecoins as a means of payment, the bank’s efforts are twofold, Kedia said.
“One is just being ready to onboard and offload a stablecoin into the banking system, and we’re working on that in collaboration with the industry consortia,” Kedia said Oct. 16 during an earnings call. “And then the second is just being ready to provide stable services as a means of payment if this market takes off within our customer base.”
A day earlier, on October 15, US Bank announced that it had created an organization that will focus on emerging digital products and services such as issuance of stable coinscryptocurrency custody, asset tokenization, and the movement of digital money.
