U.S. Bancorp is eyeing a move into the stablecoin market, CEO Gunjan Kedia said at the Morgan Stanley Financial Conference, hinting at the bank’s growing interest in digital asset innovation.
The move is signaling a growing interest in digital assets, with CEO Gunjan Kedia revealing that the bank’s current focus is on stablecoin payments, viewing them as a potentially transformative force in financial transactions.
As part of its exploration, the bank is considering several options, including issuing its stablecoin through strategic partnerships or offering custody services for the reserve assets backing existing stablecoins.
Traditional Banks Pivot to Digital Finance in Growing Stablecoin Push
The move reflects a broader trend among traditional financial institutions looking to stay competitive amid the rapid evolution of digital finance.
Kedia’s comments also align with the bank’s previous disclosure that its spot Bitcoin ETF holdings now exceed $15 million, further underscoring its growing exposure to crypto-related products.
U.S. Bancorp’s cautious but forward-looking stance shows an effort to balance innovation with regulatory and risk considerations.
By targeting payments and infrastructure rather than direct retail crypto offerings, the bank aims to tap into stablecoins’ potential for faster, cheaper, and more efficient cross-border transactions.
If the plans materialize, it would mark a significant step in bridging traditional banking with the emerging world of blockchain-based finance.
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U.S. Bancorp CEO: Stablecoin Payments Are the “Bigger Conversation”
U.S. Bancorp CEO Gunjan Kedia also stated that stablecoin payments are currently the “bigger conversation,” and the bank is closely “studying and watching” the space.
Speaking at the Morgan Stanley Financial Conference, she indicated that U.S. Bancorp is considering launching its own stablecoin, potentially through strategic partnerships.
Kedia noted that the bank has “enough pilots going on,” suggesting that internal experimentation and research are already underway. As the fifth-largest bank in the U.S., U.S. Bancorp’s interest in stablecoins signals growing institutional momentum toward blockchain-based payment solutions.
The move reflects a broader industry shift, where traditional banks seek to integrate digital asset technologies to enhance payment efficiency, reduce transaction costs, and stay competitive in a rapidly evolving financial ecosystem.
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U.S. Bancorp CEO: 90% of Stablecoin Use Still Confined to Crypto Trades
U.S. Bancorp CEO Gunjan Kedia emphasized that while stablecoin transaction volumes appear attractive, most of the activity—around 90%—still occurs within the crypto ecosystem, primarily involving crypto-to-crypto trades rather than broader financial applications.
She also cautioned that despite the hype, the utility of stablecoins in mainstream finance remains limited. However, she expressed optimism that regulatory clarity could change this.
Kedia pointed to the progress of the GENIUS Act, a proposed U.S. law aimed at setting clear rules for stablecoin issuers, which recently advanced in the Senate.
She believes such legislation will help answer key questions around how to structure compliant, secure stablecoin offerings, potentially opening the door for greater institutional and banking participation.
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