Emerging and innovative financial technologies, including artificial intelligence and digital assets, present both opportunities and risks to the credit union system. NCUA is committed to supporting credit unions as they navigate the changes financial technology and other innovations bring to the financial services industry. The agency will ensure NCUA policies, regulations, and guidance appropriately address emerging financial technology through studying emerging financial technology and its adoption by credit unions, facilitating discussions between credit unions and financial technology providers, and working with credit unions that want to use technology solutions to operate more efficiently and expand access to safe, fair, affordable, and equitable financial services.
NCUA’s Financial Technology Division
NCUA’s Financial Technology Division identifies and addresses barriers, challenges, and opportunities for the credit union industry to use technology in a productive and safe and sound manner. This technology includes, but is not limited to, artificial intelligence, cloud applications, distributed ledger technology, blockchain, digital assets, and digital identification.
The Division also explores how NCUA may use technology and innovation to enhance the examination and supervision processes. Furthermore, NCUA engages various internal and external stakeholders to encourage and promote the use of innovative technology in providing financial products and services.
Additional questions regarding financial technology and digital assets can be emailed to fintechaccessdivision@ncua.gov
Digital Assets and Cryptocurrency
Digital assets are broadly defined as any digital representation of value that is recorded on a cryptographically secured distributed ledger (blockchain) or any similar technology. Digital assets are not fiat currency, as they are not issued by a government entity. Digital assets include, but are not limited to:
- Convertible virtual currency and cryptocurrency
- Stablecoins
- Non-fungible tokens (NFTs)
Cryptocurrencies are digital assets that can be used as a medium of exchange. Cryptocurrencies are not issued by a central bank, so no central authority (like the U.S. Federal Reserve) manages or upholds their value.
The Share Insurance Fund administered by NCUA does not cover digital assets or accounts maintained at other entities that hold digital assets or cryptocurrencies for credit union members. The following are not covered by share insurance:
- NCUA’s share insurance does not cover digital assets or cryptocurrencies offered through third-party vendors to credit union members, nor does share insurance extend to digital assets or cryptocurrency stored or held in custody by a credit union.
- NCUA does not insure assets or accounts issued by any entities other than a federally insured credit union, such as cryptocurrency companies. The agency’s share insurance does not protect against any such entity's default, insolvency, or bankruptcy, including cryptocurrency custodians, exchanges, brokers, and wallet providers.
- NCUA’s share insurance does not apply to financial products held at investment companies or investment brokers, such as stocks, bonds, money market mutual funds, other types of securities, commodities, or cryptocurrencies.
Some credit unions may use third-party service providers to provide their members with digital asset and cryptocurrency services. The services offered by these third-party providers can include exchange activities involving buying and selling digital assets or cryptocurrencies, or digital asset storage services that hold these assets for credit union members.
As a courtesy and for informational purposes only, some credit unions include the value of their members’ digital assets and cryptocurrency holdings, that are acquired through these third-party providers, on the credit union’s mobile application. However, digital assets and cryptocurrencies do not represent shares at the credit union and are not covered by the Share Insurance Fund.
Digital Asset Custodianship
Federally chartered credit unions are not currently authorized to serve as a custodian for cryptocurrencies and other digital assets.
Based on the relevant state’s laws and regulations, some state-chartered credit unions may have authority to serve as a custodian for cryptocurrencies and other digital assets. In instances in which a state-charted credit union is permitted by state law to custody cryptocurrency or digital assets, federal insurance through the Share Insurance Fund would not apply to the cryptocurrency or digital assets.
NCUA will continue to monitor evolving industry practices and technological developments and will implement any existing or future legislative changes, including changes related to permitted payment stablecoins under the GENIUS Act (P.L. 119-27), that would affect these authorities.
Consumer Tips: Cryptocurrency
This short video answers common questions about cryptocurrency and highlights key information on recognizing and avoiding some popular cryptocurrency scams.
GENIUS Act
On July 18, 2025, President Trump signed into law the GENIUS Act, which creates a comprehensive regulatory framework for payment stablecoin issuers in the United States. The GENIUS Act prioritizes consumer protection, strengthens the U.S. dollar’s reserve currency status, and bolsters U.S. national security. It requires, among other things, the NCUA to issue various regulations in coordination with the U.S. Department of the Treasury and other federal and state payment stablecoin regulators.
NCUA is in the process of implementing the requirements established by the new law.
Additional Information
- Letter to Credit Unions, 22-CU-07 Federally Insured Credit Union Use of Distributed Ledger Technologies | NCUA
- Letter to Credit Unions, 21-CU-16 Relationships with Third Parties that Provide Services Related to Digital Assets | NCUA
- FIN-2025-NTC1 FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity