MADISON, Wis.– TruStage plans to launch the TruStage Stablecoin (TSDA), a fully reserved U.S. dollar stablecoin solution it said is designed to broaden CU access to the digital payment infrastructure, while also defending CUs from the erosion of their deposit bases.
The company is now seeking credit unions to participate in a pilot. There is no member-facing stablecoin as part of the new offering.
TruStage Stablecoin will be among the very first stablecoins specific to community-based financial institutions and is supported by decades of industry relationships, financial strength, and operational excellence, the company said.
“In my career working with credit unions, I’ve never witnessed the level of engagement surrounding any technology advancement similar to what I’m seeing with stablecoin solutions right now,” Brian Kaas, president and managing director of TruStage Ventures, the venture capital arm of TruStage, said in a statement. “The regulatory clarity of the GENIUS Act created a buzz among these institutions, who increasingly recognize stablecoins as a powerful payment rail for financial institutions rather than speculative crypto assets. We are working toward a collaborative stablecoin model where credit unions can thrive.”
Partnership With Block Time Financial
The company said TruStage Stablecoin is the product of a strategic collaboration between TruStage and Block Time Financial, a provider of blockchain solutions incorporating regulatory compliance into its technology.
TruStage said it will act as the issuer for TSDA, while Block Time Financial will provide blockchain infrastructure and operational support, including security protocols and digital account capabilities.
Understanding the Impact’
Kaas told the CU Daily the company began taking a “deep dive” into a stablecoin in August of 2025, following the July passage of the GENIUS Act, which creates a regulatory framework around crypto currencies.
‘We were trying to understand what the impact would be on credit unions, and what can TruStage bring to market,” said Kaas, adding the company believed it could provide better options to credit unions than other crypto providers in the market. The objective, he added, was to make it easy for CUs to get involved.
As the CU Daily has been regularly reporting, numerous analysts have been warning credit unions that instant payments is becoming increasingly critical and has already become a differentiator. As noted below, one use case in that regard, he said, would be the purchase of loan participations.
“Then we will look to broader use cases,” Kaas said. “I think it’s important for credit unions to be competitive and relevant” to retain members and attract new ones.
Digital Payment Infrastructure
Together, TruStage and Block Time said they aim to deliver a modern digital payment infrastructure for community-based financial institutions who increasingly expect instant, low-cost money movement and seamless integration for their institutions and members.
According to the companies, expected use cases include:
- Settlements and disbursements among credit unions
- Faster funding for a variety of loan types
- Quickly settling loan participations
- More convenient access and lower fees for peer-to-peer transactions, bill pay and merchant purchases
- Lower-friction cross-border payments, including for military members stationed abroad
Discussions & Disruptions
Kaas said he and TruStage have spent significant time talking to credit unions of all asset sizes about stablecoins.
“Of course, some are ahead of the curve, but the majority are in the education phase to understand the utility and member expectations,” he told the CU Daily.
That education also includes balance sheet implications.
“We’re focusing on a stablecoin, too, to mitigate the leakage of deposits outside the credit union,” Kaas explained.
Kaas pointed out that all new technologies are either overhyped or underestimated, and as the CU Daily has also reported, many experts have been cautioning CUs they are underestimating the threat to their deposit base from stablecoins.
“Many may not truly understand the implications of the GENIUS Act,” Kaas said. “All of this is still playing out in real time. But there is potential for significant disruption.”
Kaas said he recently had a discussion with a regulator who expressed similar concerns.
A Foggy Crystal Ball
“I think that credit unions that aren’t doing anything in this space are looking at their crystal balls and trying to figure out how quickly will consumers move (funds),” he continued. “There has been a gradual exit of deposits to crypto. There is a high risk that will escalate. Fintechs have made it easy. There is a need for credit unions to stay relevant, and our goal is to create an easy entry point and a way that does not require a heavy lift.”
How it Will Work
Kaas said the new TruStage stablecoin will be a hosted wallet that eliminates the need for integration with the CU’s core. As the company adds credit unions to pilot the technology, Kaas said it is also working to obtain the licensing needed to do so, as well, including at the state level.
He said phase II of the initiative is to have the hosted wallet offering in place for credit unions of all asset sizes, with all necessary licenses in place.
“We will continue to expand use cases” and participants, said Kaas.
Participants Being Sought
TruStage said it is now recruiting credit unions to join its initial pilot launch of the program in the first half of 2026, with plans to expand eligibility to additional credit unions in the future. No entry fee is planned for participants.
“Stablecoins are changing how people and institutions move money, and they offer a valuable opportunity to expand access to financial services, which aligns with the TruStage mission,” Terrance Williams, president and CEO of TruStage, said in a statement. “We’re committed to meeting partners and consumers where they are and creating innovative solutions to strengthen trust and inclusion in the digital economy.”
TruStage further stated that it continues to explore operating structures that will benefit the credit union industry. Pending regulatory approvals, TruStage Stablecoin will be issued by an affiliate of TruStage, which has a strong financial standing that is rated “A” (Excellent) by AM Best. TruStage will manage reserves with dedicated oversight, maintaining 1:1 cash backing for all issued stablecoins, ensuring stability and minimizing risk
Credit unions interested in participating in the launch of TruStage Stablecoin can express interest here.
