Young Members Push Credit Unions Toward Crypto Services

U.S. credit unions can offer digital-asset services through third-party providers but cannot hold cryptocurrency on their own balance sheets, under National Credit Union Administration guidance issued in December 2021. Regulatory uncertainty, price volatility, tax questions and fraud risks have kept much of the member-owned sector cautious. The stakes are strategic: younger customers who cannot buy, view or use crypto through their credit union may shift deposits and broader financial relationships to exchanges, FinTechs and digital banks.

A PYMNTS-PSCU report released in September 2022 surveyed 6,483 consumers, 101 credit-union executives and 51 FinTech executives from April 1-21. It found 52% of millennial credit-union members and 47% of Gen Z members had held cryptocurrency in the prior year, versus 22% of Gen X and 7.7% of baby boomers and seniors. Nearly 80% of credit-union executives expressed little or no interest in crypto innovation, while 56% cited volatility. The report urged institutions to build basic expertise, security controls and third-party capabilities before demand accelerates.