How Will XLM Benefit From U.S. Bank Stablecoin Tests on Stellar AllinCrypto November 26, 2025
U.S. Bank, the fifth-largest commercial bank in America, announced a new pilot that will issue bank-grade stablecoins on the Stellar network.
Working with PwC and the Stellar Development Foundation (SDF), the bank is exploring whether regulated institutions can safely issue programmable digital dollars on a public network while still meeting strict compliance.
This pilot is one of the most significant trials between banks and crypto networks, signifying how large financial institutions are moving beyond experimentation and into the trenches to test blockchain-based money in real-time.
Why Stellar Is Emerging as a Leading Network For Banks
U.S. Bank selected Stellar specifically for features such as asset freezing, controlled transaction flows, and the ability to unwind or reverse transfers, capabilities that have been built directly into protocols.
According to U.S. Bank’s Digital Asset Head Mike Villano, XLM’s abilities align closely with what regulators are expecting when it comes to digital tokens. Enforceable compliance, KYC-compatible operations, and clear mechanisms for handling errors or fraudulent transactions are key.
Very few public blockchain networks offer such safeguards in a native, standardized way, making Stellar Lumens the most attractive option for PwC and US Bank in exploring stablecoin issuance.
Mike Villano, Senior Vice President, Head of Digital Asset Products, US Bank:
“For bank customers, we have to think about other protections around know your customers, the ability to unwind transactions, the ability to clawback transactions, and one of the great things about the Stellar platform as we did some more research and development on it was learning that they have the ability at their base operating layer to freeze assets and unwind transactions”
As banks and global enterprises increasingly explore stablecoins for treasury operations, cross-border settlements, and programmable payment flows, Stellar is able to offer a blend of public on-chain transparency and institutional-grade tools for developers.
If stablecoin payments grow to a projected $1 trillion by 2030, networks facilitating these flows will become critical pieces of global financial ecosystems. Networks capable of allowing banks to use stablecoins are set to benefit the most.
If U.S. Bank’s pilot is successful, it could pave the way for other banks, including those at the regional and national levels, to explore public blockchains like Stellar for stablecoin or tokenized-asset use cases.
How the XLM Token Could Benefit
While banking institutions may want to issue their own stablecoins on Stellar, the network’s native token, XLM, can play a crucial role in liquidity and network security.
Stablecoins need efficient routing and settlement pathways. XLM, as a native token, is able to act as a bridge asset. Increased stablecoin activity could therefore translate into demand for increased XLM-Stablecoin liquidity pools.
If enterprises begin transacting on Stellar due to increased interest and utilization of services, network usage will rise, meaning more operations, more fees to be handled, and greater utility flowing through the ecosystem, leading back to XLM.
Even though Stellar’s fees are small, significant transaction volume can create meaningful activity that boosts XLM’s role within the network and therefore its price.
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