U.S. Bancorp has reportedly initiated testing of its own stablecoin on the Stellar blockchain network. According to reports from Bloomberg and Wu Blockchain, this initiative is a key component of the bank's broader strategy to expand into the digital asset sector. The pilot program aims to test efficient settlement solutions using distributed ledger technology, specifically leveraging public Layer 1 infrastructure like Stellar. This move signals continued institutional interest in utilizing public or permissioned blockchains for core banking operations, further bridging the gap between traditional finance and the crypto ecosystem. [Update 1] New reports confirm that the initiative focuses specifically on improving institutional settlement efficiency. U.S. Bank joins a growing roster of traditional financial institutions experimenting with blockchain technology by testing stablecoins directly on networks like Stellar.