The US Bank pilot to issue stablecoins on the Stellar network, executed with PwC and the Stellar Development Foundation, has revived expectations of an XLM price recovery. The project connects traditional banking infrastructure with Stellar’s compliance features and positions the token as a potential liquidity catalyst for cross-border payments.
US Bank —the fifth-largest commercial bank in the U.S.— launched a pilot to issue customized stablecoins directly on Stellar, in collaboration with PwC and the Stellar Development Foundation. The initiative leverages a distinctive capability of Stellar, the so-called “asset freeze”, which allows locking assets at the chain’s base layer to meet compliance requirements and protect customers; the “asset freeze” is defined here as the technical capability to restrict or reverse movements of an asset on the ledger to satisfy regulatory or security processes.
Stablecoin, in this context, is a token whose value is pegged to a fiat currency or another stable asset to reduce the typical volatility of cryptocurrencies. According to pilot data, the design is aimed at facilitating payments and complying with KYC/AML at the distributed ledger level, a requirement that, according to the published technical documentation, proves key for institutional adoption.
Stellar already hosts regulated stablecoins such as GYEN and ZUSD, in addition to integrations with USDC. In terms of real-world use, the Stellar Disbursement Platform (SDP) recorded $2.8 million processed at the close of Q2 and programs like GIZ reach €400,000 monthly, showing applications in remittances and humanitarian aid.
Impact on XLM after US Bank Tests Stablecoin Issuance on Stellar and risks
The news of the pilot affected XLM’s market dynamics, with cited data indicating sporadic upticks and notable price references. These include a 3.53% rise to $0.2508 and recoveries of 6% between levels of $0.33 and $0.35; additionally, an accumulated advance of 35.08% since January 1, 2025 and an annual high in 2024 of $0.5592 are mentioned.
Projections gathered in the analysis range between targets of $0.32 to $1.29 for 2025 and more optimistic scenarios up to 2030, with ranges mentioned of $1.50–$2.50 and extreme hypotheses of $6.19. The pilot seeks to transform XLM’s utility from a speculative token to a “bridge currency” for the movement of stablecoins and the payment of fees in microtransactions, with practical implications for users and institutions including lower latency in cross-border payments and a native compliance layer for bank issuers.
However, the progress has clear limits and risks that could hinder adoption. These include market volatility, regulatory changes (with references to concerns from authorities such as the European Central Bank and the possibility of actions by bodies like the SEC), competition from other blockchains, and variation in volume and open interest.
The US Bank pilot on Stellar represents a tangible step toward institutional integration of stablecoins and reinforces the utility argument for XLM, although its sustained impact will depend on operational adoption and regulatory developments.
