U.S. Bancorp Tests Stablecoin on Finance-Focused Blockchain Amid New Crypto Gold Rush

U.S. Bancorp is testing its own stablecoin on the public blockchain Stellar as part of a broader push into digital assets, according to the Minneapolis-based financial institution.

The bank joins a bevy of major financial players looking to capitalize on growing interest in stablecoins, a type of cryptocurrency typically backed one-to-one by US dollars in cash reserves and short-term US Treasuries. The prospect of cheaper cross-border transfers and a more lenient regulatory environment has sparked a flood of investment in the area including from the likes of Citigroup Inc., which recently tapped the crypto exchange operator Coinbase Global Inc. as its stablecoin partner.