Table of Contents
December 30, 2025.
Telcoin Digital Asset Bank has initiated blockchain banking operations by minting $10 million in eUSD, a fully regulated, dollar-backed stablecoin deployed directly on the Ethereum and Polygon networks.
This marks the first time a U.S.-chartered bank has issued a stablecoin on public blockchains, bridging traditional regulated banking with decentralized finance (DeFi).
Key Takeaways
- Telcoin Digital Asset Bank minted $10M eUSD on December 26, 2025, as first U.S. bank-issued stablecoin on public chains.
- eUSD deployed on Ethereum for security and Polygon for low-cost, fast transactions.
- Backed 1:1 by U.S. dollar deposits and Treasuries under Nebraska charter.
- Enables unified banking: deposits, stablecoin issuance, and payments in one regulated entity.
- Customer accounts and retail access expected early 2026 via Telcoin Wallet.
Background on Telcoin and Regulatory Approval
Telcoin received final charter approval from the Nebraska Department of Banking and Finance in November 2025, establishing Telcoin Digital Asset Bank as the nation's first Digital Asset Depository Institution.
The charter operates under the Nebraska Financial Innovation Act, aligned with federal GENIUS Act guidelines.
This framework authorizes a single charter for stablecoin issuance, customer deposit acceptance, and digital payment processing. Unlike non-bank stablecoin issuers such as Tether (USDT) or Circle (USDC), Telcoin operates under direct U.S. banking supervision.
The bank holds reserves in U.S. dollar deposits and short-term Treasuries, ensuring 1:1 backing and full redeemability.
Telcoin, originally focused on blockchain-based remittances and mobile financial services, positions eUSD as its flagship "Digital Cash" product. The company aims to connect U.S. bank accounts directly to on-chain stablecoins, enabling compliant access to DeFi protocols.
Details of the eUSD Launch
On December 26, 2025, Telcoin minted an initial $10 million supply of eUSD. The stablecoin launched simultaneously on Ethereum for institutional-grade security and settlement, and on Polygon for low-cost, high-speed transactions suitable for everyday payments and remittances.
Telcoin CEO Paul Neuner stated: “We’re thrilled to issue eUSD on Ethereum and Polygon as phase one of our banking operations.” He described the launch as a foundational step toward blockchain-native bank accounts under the Nebraska charter.
Patrick Gerhart, President of Banking Operations, emphasized responsible rollout: “Today eUSD transitions from development to live issuance as a foundational step.” The bank plans to onboard personal and business customers in early 2026 via the Telcoin Wallet app.
eUSD reserves are held in regulated custodial accounts, subject to audits for transparency. This structure addresses counterparty risks seen in unregulated stablecoins.
Significance for U.S. Banking and DeFi Integration
The eUSD launch represents a milestone in regulated blockchain finance. Prior stablecoins dominate the market, USDT and USDC hold over 90% share, but operate as non-bank entities, often offshore or under trust charters.
Telcoin's model integrates stablecoin issuance with depository banking, allowing direct customer deposits to back on-chain tokens. This unified approach reduces operational fragmentation and aligns with U.S. regulatory concerns over systemic risks in digital assets.
Deployment on Polygon enhances accessibility: the network offers near-instant finality, low fees, and scalability, making eUSD viable for micropayments, cross-border transfers, and DeFi applications. Ethereum provides strong security for larger settlements.
Industry observers note this could accelerate institutional adoption of stablecoins, projected to grow significantly. Telcoin targets a share of the expanding market by offering compliant, bank-grade Digital Cash.
Implications and Next Steps
Customer onboarding begins in early 2026, starting with account offerings linked to eUSD. The bank plans compliant yield products and expanded services, subject to approval.
This development signals growing U.S. regulatory support for blockchain banking. Nebraska's framework serves as a model for state-level innovation in digital assets.
Conclusion
Telcoin's eUSD launch establishes a regulated pathway for U.S. banking to integrate with public blockchains, advancing compliant DeFi access and digital payments.
Read Next:
- Best Stablecoins for Cross-Border Payments in 2025
- The Role of Stablecoins in Monetary Policy Transmission
- The Neobank Transition Report
FAQs:
1. What is eUSD?
eUSD is a U.S. dollar-backed stablecoin issued by Telcoin Digital Asset Bank, fully redeemable 1:1 and backed by regulated reserves.
2. Is eUSD the first bank-issued stablecoin in the U.S.?
Yes, it is the first stablecoin issued directly by a U.S.-chartered bank on public blockchains.
3. Which blockchains support eUSD?
eUSD is live on Ethereum and Polygon.
4. How is eUSD backed?
100% by U.S. dollar deposits and short-term U.S. Treasuries in regulated custody.
5. When can users access eUSD?
Initial mint complete; personal and business account onboarding starts early 2026.
6. How does this differ from USDC or USDT?
eUSD issued under a full banking charter, integrating deposits and payments with stablecoin operations.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
