NAPERVILLE, Ill. — Alloya Corporate Federal Credit Union launched a controlled pilot Tuesday of CUUSD, a U.S. dollar-denominated payment stablecoin for approved credit unions and other institutional participants.
The stablecoin is issued by Appex CUSO LLC, or Alloya Premier Exchange, a wholly owned credit union service organization of Alloya. It is designed to let approved institutions transfer and hold digital value across payment networks, Alloya said. CUUSD is not available for purchase by consumers or the general public.
At launch, Appex minted one-million CUUSD tokens on the Ethereum blockchain, representing $1 million in digital value, for pilot and testing activities. Appex is responsible for issuing the tokens and administering reserves. Alloya said the limited pilot will test operations and technology and evaluate potential uses.
‘Important Milestone’
“Today marks an important milestone as CUUSD begins operating on the Ethereum global blockchain network through a controlled institutional pilot,” Alloya CEO Todd Adams said, adding the infrastructure is intended to help financial cooperatives transfer value and share resources.
Alloya said CUUSD extends its payment services, which include wires, checks, ACH and coin and currency services, into digital networks. The Naperville-based corporate credit union provides liquidity, investment, payment and other services to more than 1,200 credit unions and credit union organizations nationwide.
Adams credited Alloya’s board for supporting the project and thanked Dr. Lamont Black and Wide Open Ventures, along with XKOVA, for strategic and technical contributions.
Alloya said any future issuance, distribution or commercial use of CUUSD remains subject to applicable legal, regulatory and supervisory requirements. It listed 0x7f7bfAab710772bB29543e3d120fDaf2fC36389D as the official Ethereum smart-contract address and directed participants to verify it through CUUSD.com before interacting with a token claiming to be CUUSD.
