U.S. Bancorp is testing its own stablecoin on the Stellar blockchain as part of its digital asset business expansion. The bank recently established a digital assets and financial flows division, with CEO Gunjan Kedia highlighting a focus on crypto custody and stablecoin payments, though noting moderate client demand for payment solutions. Mike Villano, U.S. Bank's head of digital asset products, emphasized Stellar's asset freezing capabilities, which are crucial for institutions considering on-chain stablecoin adoption.