Minnesota-based St Cloud Financial Credit Union (SCFCU) has announced plans to launch Cloud Dollar, a proprietary stablecoin, as it looks to compete in a fast-evolving digital market.
SCFCU, which has more than $400m in assets, says this is the first stablecoin launch from a US credit union.
The stablecoin – a type of cryptocurrency that aims to keep a stable value relative to a specified asset – was developed by the credit union with blockchain firm Metallicus and DaLand, a credit union service organisation (cuso) set up to focus on financial technology.
Cloud Dollar is scheduled to launch as part of the credit union’s digital asset vault service in the last quarter of the year, and will connect directly to the credit union’s banking system.
The crypto will be issued on Metallicus’ Metal Blockchain banking stack and integrated through DaLand’s Coin2Core software, which ties blockchain services to existing credit union infrastructure.
It is hoped the initiative will keep deposits on-platform while giving members a way to move money instantly and at lower cost in a regulated manner.
On its website, the credit union told members: “This cutting-edge platform is designed to provide you with enhanced security, convenience, peace of mind and more while ensuring the security and accessibility of your digital assets.”
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It added: “The safety and security of our members and their assets is paramount. SCFCU understands that the digital asset space isn’t for everyone. Rest assured, we remain fully committed to our traditional banking services and sound financial practices.
“Our involvement in digital assets is just one part of our broader mission to offer diverse, secure financial solutions, ensuring that all our members’ needs are met – no matter where you are on your financial journey. We are excited to soon offer this first-of-its-kind platform to our current and future members.”
DaLand CEO Jeff Levesque said in a statement: “Credit unions can’t afford to watch digital assets evolve without them members need trusted institutions to navigate this space safely.”
Now, the cuso hopes other credit unions will take up its stablecoin tech.
“Instantaneous, low-cost stablecoin payments are an eventuality which will impact the entire global economy; responsible adoption of digital assets in community co-operatives is a critical milestone on the path to relevance,” said Jon Ungerland, chief information officer of DaLand.
“With Coin2Core, our cuso connects credit unions to over $3.9tn in liquidity flowing across these new rails, and we partnered with Metallicus for its proprietary, layer 0 digital banking network with layer 1, white-label stablecoin capability – a perfect complement to our core-centric products and philosophy, helping our partners stem deposit drain and combat member attrition.”
DaLand says its partnership with Metallicus “helps mitigate declining card-based revenues and unlocks new income streams through faster, more secure, and more profitable payment networks.
“Our robust digital-asset bridge ensures credit unions remain future-proofed, able to seamlessly integrate a wide array of emerging modern-money into their daily operations.”
