St. Cloud Financial Credit Union (SCFCU) in Minnesota is preparing to launch its stablecoin called Cloud Dollar (CLDUSD), marking the first of its kind from a credit union in the U.S.
Cloud Dollar: A New Step in Financial Technology
Stablecoins are typically issued by fintech and crypto companies as they link regular money with digital assets. However, credit unions have been slower to adopt these innovations. SCFCU aims to show that smaller banks can also leverage blockchain technology to remain competitive.
Benefits of Cloud Dollar for Customers
Cloud Dollar will be issued on the Metallicus blockchain, designed for regulated financial services. To ensure smooth integration with SCFCU’s systems, the token will connect through DaLand CUSO’s Coin2Core software. This allows the credit union to keep member deposits on its platform while enabling blockchain-based payments. Members can transfer money instantly, safely, and at a lower cost than conventional transfers.
Stablecoins Entering Traditional Banking
The launch of Cloud Dollar signifies broader changes in finance as stablecoins are becoming part of everyday banking. Major institutions like JPMorgan have already introduced their digital tokens for payments. Other banks are also exploring tokenized deposits to expedite money transfers. Experts suggest that Cloud Dollar could serve as a model for other credit unions that wish to blend member-focused banking with blockchain technology.
The advent of Cloud Dollar emphasizes that innovation in financial technology is not limited to large banks. Credit unions like SCFCU can adopt blockchain to enhance service for their members.
