Fintech and insurance giant TruStage pilots stablecoin geared for credit unions

TruStage, a financial technology firm that reportedly works with about 93% of all U.S. credit unions, is issuing a dollar-pegged stablecoin. The TruStage Stablecoin (TSDA) will be issued through a partnership with blockchain tech firm Block Time Financial.

Block Time will provide operational support, including security protocols and digital account capabilities, while an affiliate of TruStage will act as the stablecoin’s issuer and manage the token’s 1:1 cash reserves, according to a on Tuesday.

"We're thrilled to see stablecoins gaining traction within financial institutions as an emerging payment infrastructure, yet one of the largest untapped segments is credit unions," Block Time CEO Bruce Rosenheimer said in the release. "The strong history and trust TruStage has built with credit unions allows it to create a widely adopted solution for the whole industry. We are excited to be part of this endeavor."

TruStage Ventures President and Managing Director Brian Kass notes the firm’s exploration comes on the back of the GENIUS Act, which provided federal standards for issuers in the United States.

Of note, the U.S. Congress is currently working on broader crypto market structure legislation that has been held up, in part, by banking and credit union concerns over stablecoin yield offerings, which could draw deposits away from traditional savings and checking accounts.

"In my career working with credit unions, Ive never witnessed the level of engagement surrounding any technology advancement similar to what I'm seeing with stablecoin solutions right now," Kaas said, adding that TSDA will operate under a "collaborative stablecoin model."

TruStage is in the process of recruiting credit unions to join its pilot program, which will initially run throughout the first half of 2026. The firm notes it expects TSDA to find use for loan funding and settlements, peer-to-peer transactions, cross-border payments, and settlements and disbursements among credit unions.

Founded in 1935, TruStage provides insurance products, investment solutions, retirement plans, and other financial tools tailored for credit unions.

"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," said Terrance Williams, President and CEO of TruStage. "We're committed to meeting partners and consumers where they are and creating innovative solutions to strengthen trust and inclusion in the digital economy."

As big banks begin exploring stablecoin integrations, several crypto-native firms are working to issue stablecoins under federal oversight, including Tether USAT and Stripe subsidiary Bridge. Standard Chartered expects the market cap for all stablecoins to reach $2 trillion by the end of 2028, generating demand for up to $1 trillion in U.S. Treasury bills.