U.S. Bancorp, one of America’s top five banks, is exploring issuing its own stablecoin amid a renewed interest in crypto custody services. The bank’s crypto custody arm, launched in 2021, struggled under strict regulatory pressure but has recently seen a revival under the current U.S. administration.
CEO Gunjan Kedia announced that U.S. Bancorp is actively assessing the feasibility of a bank-supported stablecoin, evaluating models for custody, collateral management, escrow services, and operational frameworks. While regulatory feedback is still shaping the strategy, ongoing pilot projects suggest preliminary progress is underway.
The interest in stablecoins reflects a broader shift in mainstream finance toward programmable digital money that can improve payments and reduce friction in cross-border transactions . Banks like U.S. Bancorp are re-entering the arena with guarded optimism, mindful of compliance risks and operational complexity.
The stablecoin could complement U.S. Bancorp’s custody services, offering clients integrated services from wallet storage to digital asset issuance and settlement. However, regulatory clarity, particularly around capital requirements and reserve disclosures, remains a critical hurdle.
As the U.S. Senate advances stablecoin frameworks such as the GENIUS Act, U.S. Bancorp’s measured approach positions it to become a contender in institutional digital asset infrastructure — if regulatory and technological demands align.
