Credit unions with $25B in assets queue up for stablecoin test drive 🏦

Stablecore has opened an early-access program giving US credit unions a sandbox to evaluate stablecoins and other blockchain-based financial services before committing to full integration, the company said Wednesday. The initiative is being run with Circuit, a credit union service organization focused on research and development, and Curql, a fintech investment collective that represents more than 160 credit unions. Participating institutions will be able to test stablecoin payments, tokenized deposits, Bitcoin ($BTC), crypto on- and off-ramps and staking capabilities through their existing core banking platforms.

Credit unions managing roughly $25 billion in combined assets are expected to take part in the program, which extends Stablecore's effort to bring stablecoin and tokenized-asset services to US banks and credit unions. In February, the company joined the Jack Henry Fintech Integration Network, operated by the eponymous core banking technology provider, giving Stablecore access to approximately 1,670 bank and credit union core clients.

The launch comes as federal regulators move toward formal oversight of payment stablecoins issued through credit union subsidiaries. In February, the National Credit Union Administration proposed a licensing framework that would require any payment stablecoin issuer operating through a subsidiary of a federally insured credit union to obtain an NCUA license before issuing stablecoins. The proposal addresses the licensing process and oversight framework, with additional rulemaking on reserve requirements, capital, liquidity and risk management expected at a later date. The proposed rules were open for public comment through April 13.

Credit unions remain a significant component of the US financial system, with more than 4,200 federally insured institutions nationwide. Although the number of institutions has declined over the years, membership and total assets have continued to grow, according to Federal Reserve Economic Data figures cited by Stablecore.