US Bank pilots custom-built stablecoin

U.S. Bank is testing its own dollar-backed stablecoin, USBDC, to speed up international money transfers. In a recent pilot, the bank successfully moved funds between North America and Europe instantly. Currently, moving money across borders takes days because of old banking systems and time zone differences. This new technology allows transactions to settle in seconds, 24 hours a day, 7 days a week. For retailers and service providers, this signals a shift in how you might eventually receive payouts or pay international suppliers. Stablecoins act like digital cash. Because they are pegged to the U.S. dollar, they don't have the price swings seen with Bitcoin. U.S. Bank is one of the first major American institutions to build its own version of this tech. While this specific test was for internal bank transfers, the goal is to expand it to corporate clients. Faster settlement means better cash flow for your business. You won't have to wait for 'banking hours' to see your funds move. As this tech moves from the back office to the storefront, it could lower the cost of accepting payments and eliminate the lag time between a customer swipe and money hitting your account.

Source: Finextra — Lending

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