U.S. licensed bank Telcoin officially opens, launching the eUSD stablecoin, which has been deployed on Ethereum and Polygon. This is the first time in U.S. history that a traditional bank has issued a USD stablecoin, marking an important connection between Wall Street and the blockchain ecosystem.

**What is eUSD?**
Simply put, it is a blockchain asset pegged 1:1 to the US dollar, circulating on Ethereum and Polygon. This model transfers traditional financial credit onto the chain, effectively allowing the bank system’s endorsement to enter the decentralized finance ecosystem. For users, it provides an additional stablecoin option from a licensed institution.

**Why choose these two chains?**
Ethereum is the most comprehensive smart contract ecosystem, while Polygon is highly active due to its low transaction costs. This combination covers mainstream DeFi users, enabling eUSD to efficiently circulate across two different liquidity pools. From an exchange perspective, this deployment strategy ensures broad market reach.

**Practical considerations**
However, things are not that simple. First, issuing stablecoins by U.S. banks is still experimental, with regulatory frameworks evolving and policy adjustments uncertain. Second, USDT and USDC have already firmly secured the market; for eUSD to make a mark, real application scenarios are needed—bank backing alone is not enough. Lastly, the collapse of UST last year serves as a reminder that systemic risks still exist—even with institutional backing, if the issuer encounters issues, user assets are at risk.

This news is a short-term positive for the Ethereum and Polygon ecosystems, demonstrating that capable institutions are willing to deploy on-chain. But in the long run, whether eUSD can become a mainstream tool for cross-border payments depends on actual adoption rates. The trend of traditional financial institutions entering the space continues, and it’s worth watching who will be next.