NCUA issues letter on third-party digital asset services

NCUA issued a Letter to Credit Unions (21-CU-16) to provide clarity on the already existing authority of federally insured credit unions to establish relationships with third-party providers that offer digital asset services to the members, provided certain conditions are met.

This includes third-party provided services to allow federally insured credit union members to buy, sell, and hold uninsured digital assets with the third-party provider outside of the FICU.

Digital assets are one of many terms used to describe distributed ledger technology (DLT) based tokens.

NCUA—as insurer—does not prohibit federally insured credit unions from establishing these relationships. The authority for federal credit unions to establish these relationships is described in in the letter.

 

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