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Credit Unions Now Allowed to Partner with Crypto Providers

Federal Regulator Approves Move

In a landmark decision, the National Credit Union Administration (NCUA) has announced that credit unions can now partner with third-party crypto service providers. This new guidance will allow credit unions to support the buying and selling of cryptocurrencies.

Growing Demand from Members

The decision comes amidst a surge in demand for cryptocurrency services among millennials and Gen Z. According to recent research from Fiserv, 61% of millennials and Gen Z want their bank or credit union to hold cryptocurrency. Fiserv also announced a strategic partnership with a crypto platform to offer its services to credit unions.

Credit Union Times reports that 14% of credit unions plan to offer crypto investing, trading, or custody in 2022. This demonstrates the growing interest in crypto among credit union members.

Benefits for Credit Unions

Credit unions that embrace crypto offerings can benefit by:

• Attracting new members
• Retaining existing members
• Catering to the growing demand for crypto services
• Seizing the opportunity to facilitate the crypto experience

While cryptocurrency holders do not necessarily need financial institutions, credit unions can play a key role in providing a user-friendly and secure platform for crypto transactions.

One recent study found that 26% of credit union members hold some form of cryptocurrency. This suggests that credit unions can benefit from catering to this member base, and many have already started to explore crypto offerings.

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