GLASTONBURY, Conn. — DaLand CUSO said its Coin2Core digital asset platform has received the first Level 4 “Production” rating awarded under the Government Blockchain Association’s Blockchain Maturity Model, providing what the CUSO said is independent validation of its approach to keeping digital asset services inside a financial institution’s existing core.
According to DaLand, Coin2Core connects banks and credit unions to Bitcoin, Ethereum, USDC, XRP, Solana and other digital asset networks through their existing core systems rather than requiring customers or members to use a separate wallet, application or outside exchange.
DaLand said the approach is designed to allow digital assets to become part of the financial institution’s existing business, with activity visible to examiners and reported through the same systems used for other accounts. The company contends that keeping digital assets within the core can also help institutions retain the deposit, payments and lending relationships associated with members’ wealth.
Built From Inside Banking
DaLand said Coin2Core was developed by people with experience in core banking systems and operations rather than by a cryptocurrency company seeking access to financial institution customers.
The platform runs natively on Corelation KeyStone, Jack Henry Symitar and Fiserv DNA, according to DaLand. The CUSO said Coin2Core operates under NCUA examination and is in production at credit unions, including St. Cloud Financial Credit Union.
DaLand said that gives credit unions an NCUA-examined, core-native digital asset solution operating across the three major credit union core platforms.
DaLand is also owned collaboratively by the financial institutions it serves. The company said the CUSO structure gives community financial institutions a shared, institution-owned bridge to digital assets rather than requiring them to rent access from an outside provider.
“Most institutions are being told their digital asset strategy is a choice of vendor. It isn’t. It’s a choice of whether the business stays in your core or leaves it,” said Jon Ungerland, CIO and chief of staff at DaLand CUSO. “We built Coin2Core from inside the core because that’s where the return is and that’s where the customer relationship lives. This certification is independent confirmation that the approach holds up in production.”
Risks Of Outside Platforms are Cited
DaLand said financial institutions face potential costs when they rely on bolt-on digital wallets, third-party applications or outside cryptocurrency exchanges.
According to the CUSO, separate wallets and applications can add vendors, reconciliation requirements and security exposure outside the financial institution’s direct control. Referring customers or members to large exchanges or omnibus custody platforms can also move both the relationship and capital outside the institution, DaLand said.
The company argues that when digital wealth moves outside a bank or credit union, related deposits, payments and lending relationships can follow. That can also mean money that otherwise could be used to fund loans in local communities is deployed elsewhere, DaLand said.
“Technology should strengthen the role of the credit union, not replace it,” said Jed Meyer, CEO of St. Cloud Financial Credit Union and chairman of DaLand’s board of directors. “Our responsibility has always been to ensure community financial institutions can participate in the future of finance with confidence on their own terms, inside their own core. This is strategy protection in practice, and independent validation like this confirms we’re building it the right way.”
Rating Exceeded What DaLand Sought
DaLand said the Level 4 rating was higher than the rating it originally sought.
The CUSO submitted the MIDAS Hybrid Custody architecture underlying Coin2Core for a Level 3 assessment under the Government Blockchain Association’s Blockchain Maturity Model. At the time, Level 3 was the highest rating the program had awarded, according to DaLand.
Assessors expanded their review after finding capabilities that went beyond that level, ultimately awarding Coin2Core a Level 4 “Production” rating, DaLand said.
MIDAS distributes control of digital asset keys across independent secure environments and requires coordinated authorization from the customer, financial institution and additional security layers before assets can be moved, according to DaLand. Each account also receives its own private key rather than holding a share of a pooled omnibus balance.
“Credit unions are being asked to make consequential decisions about digital asset infrastructure, and they need more than promises to guide those decisions,” said Gerard Daché, executive director of the Government Blockchain Association. “The Blockchain Maturity Model gives them a way to examine a solution’s governance, technical capabilities, and operational practices against defined criteria. Coin2Core’s result gives credit unions independent evidence they can bring into their own due diligence.”
DaLand said Coin2Core’s assessment details will be published in the Government Blockchain Association’s Directory of BMM-Rated Trusted Blockchain Solutions. The directory is referenced by the Dynamic Coalition on Blockchain Assurance and Standardization, a coalition recognized by the United Nations Internet Governance Forum.
During the award presentation, Daché described Coin2Core as “the most trusted blockchain solution in the world,” according to DaLand.
Other Core-Based Services
DaLand CUSO describes itself as a credit union-owned collaborative CUSO providing full-service digital asset solutions intended to keep community financial institutions connected to emerging forms of money.
Coin2Core is powered by DaLand’s patent-pending MIDAS Hybrid Custody architecture and provides digital asset capabilities directly through the KeyStone, DNA and Symitar core systems, the company said.
DaLand also offers its C.O.D.E. Engine suite, which automates disputes, lending and member origination on the same core platforms.
The CUSO said the combination is intended to preserve member relationships, institutional control and cooperative economics as credit unions expand into digital assets.
