Federal Credit Unions to Test Stablecoins, Digital Assets

Digital asset infrastructure provider Stablecore has joined forces with two U.S. federal credit union organizations to launch a program intended to help the small lenders evaluate stablecoin, tokenized deposit and digital asset products as adoption grows.

Together with Circuit, a research and development Credit Union Service Organization (CUSO) and Curql, a fintech investment organization with more than 160 credit union members, Stablecore’s initiative will allow participating credit unions to test and offer stablecoin and digital asset services. These include stablecoins, tokenized deposits, Bitcoin, on and offramps, and staking, among other things.

The program will provide education to both staff and members of credit unions, in order to prepare them for the long-term shift towards digital asset adoption, the organizations said in a statement. Credit unions with assets of more than $25 billion are participating in the program at launch.

“By enabling credit unions to offer digital asset products, we are helping them stay relevant against competitive threats, retain their deposits and continue to be the trusted, primary financial partner for their members,” said Alex Treece, CEO and co-founder of Stablecore. “Members trust their credit unions because of their ability to provide secure, trusted access to the financial products and services they care about within a single experience.”

The program’s goal is to provide collaborative spaces allowing institutions to explore stablecoins and digital assets, learn from one another, and better understand how these technologies can shape the future of financial services, according to Ethan Cunningham, chief strategy officer at Circuit.

“By working together, credit unions can evaluate emerging opportunities while staying true to the trust, security, and member-first focus that sets them apart,” Cunningham said.

The program is also designed to help credit unions attract and retain members who might otherwise seek out fintechs, neobanks, and crypto exchanges for digital asset services.

Credit union RBFCU is participating at the launch of the project, said its president and CEO, Mark Sekula. It is “committed to meeting our members where they’re at,” he said. “That means offering the latest technology and financial services, and serving as leaders in the development of stablecoin and digital asset capabilities.”