Enterance to TruStage headquarters in Madison, Wis. (Source: CU Times).
TruStage announced plans Tuesday to launch a U.S. dollar-backed stablecoin designed specifically for credit unions, marking one of the first such efforts aimed at community-based financial institutions.
The planned TruStage Stablecoin (TSDA) will be fully reserved and backed 1:1 by cash, according to the Madison, Wis.-based company. TruStage currently works with more than 93% of the nation's 4,300-plus credit unions, which collectively hold more than $2 trillion in assets.
Company executives said the offering is intended to modernize digital payment infrastructure for credit unions seeking faster, lower-cost money movement without venturing into speculative crypto markets.
"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," Brian Kaas, president and managing director of TruStage Ventures, said.
TruStage will serve as the issuer of TSDA, while Block Time Financial will provide blockchain infrastructure, security protocols and digital account capabilities.
Expected use cases include inter-credit union settlements, faster loan funding, streamlined loan participations, lower-cost peer-to-peer transactions and cross-border payments, including for military members stationed overseas.
TruStage said it is recruiting credit unions for an initial pilot launch in the first half of 2026, with no entry fee planned. Pending regulatory approvals, the stablecoin will be issued by a TruStage affiliate rated "A" (Excellent) by AM Best.
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