DALLAS—When John Wingate looks at the year ahead, he sees credit unions going all in on the stablecoin market at a pace few could have imagined just months ago.
Wingate, president and CEO of BankSocial, predicts that by the end of 2025, “a couple handfuls” of credit unions will have launched their own stablecoins, 50-60 will have utilized tokenized deposits and a similar amount will have embedded DLT rails into their digital bank sign-in experience, experimenting with everything from rewards programs to new lending models.
iStock-Hammad Khan
But he cautions that this period, where Credit Unions issue their own private stablecoins, feels less like the final shape of things to come and more like what he calls “wildcatter season”—a reference to the freewheeling days of frontier money in the 19th century.
Stablecoins, digital tokens pegged to the U.S. dollar, promise faster transactions and cheaper payments. But tokenized deposits also offer new ways for credit unions to reward their members. At the same time, they bring new challenges—compliance, liquidity management, and the risk of moving too fast without the right infrastructure. For credit unions, the promise is real, but so are the risks.
The First Credit Union Stablecoin
That balance of risk and opportunity is already being tested. Earlier this summer, a Texas-based credit union quietly became the first in the world to issue its own stablecoin, $tx USD, in partnership with BankSocial, Wingate said. The launch took place on July 20 via the Hedera blockchain—the same network recently chosen for the first-ever state-issued stablecoin in Wyoming.
The move, Wingate said, wasn’t about chasing headlines or trying to mimic Wall Street giants.
“This credit union is doing some really cool stuff,” he explained.
Instead, the launch was focused on practical use cases for members: roundup rewards on debit card purchases, faster dividend payouts, and even exploring how bundles of loans could be tied to stablecoin-backed shared rewards.
“This was absolutely a stablecoin,” Wingate emphasized, noting that BankSocial has since helped other credit unions issue similar tokens. But $tx USD was the first—and it set the tone for what’s now a wave of experimentation, he added.
The passage of the GENIUS Act earlier this year gave stablecoins, and tokenized deposits, their first clear federal regulatory framework. For community financial institutions long wary of blockchain’s “Wild West” reputation, that was the green light to start innovating in earnest.
For credit unions, stablecoins and tokenized deposits are particularly attractive as an internal and external tool. They can streamline accounting, enable instant member rewards, and open new channels for loyalty and engagement. A stablecoin like $tx USD can also give members new flexibility—converting rewards into Bitcoin, tokenized stocks, or other assets in seconds, Wingate said.
John Wingate
But the big question remains: should every credit union mint its own stablecoin? Wingate doesn’t think so. But should every credit union implement stablecoin rails and tokenized deposits. Wingate says absolutely, and many already have.
“Do I think in five years every financial institution will have its own stablecoin? I don’t,” he said. “I think what will end up happening is things like our Cooperative Liquidity Network—credit unions pooling together at the base layer—will matter more than everyone trying to manage their own coin.”
Risks And Roadblocks
For now, the challenges are as important as the opportunities. Launching a stablecoin means navigating blockchain choices, custodial responsibilities, and regulatory compliance.
“You don’t want to be that credit union that ends up in special action because you didn’t know you were a qualified custodian,” Wingate warned.
There’s also the issue of liquidity. A stablecoin minted for internal rewards may be relatively simple. But the moment it’s meant for external use—redeemable outside the credit union—the demands grow exponentially: redemption partners, shared liquidity pools, on- and off-ramps to other assets. Without that, costs could actually rise instead of fall, Wingate asserted.
That’s why Wingate is bullish on cooperative approaches and leveraging best-in-class payment rails. BankSocial’s Cooperative Liquidity Network, a credit union–owned CUSO, is already attracting dozens of institutions. By tying stablecoin projects to a shared backbone, the model helps avoid the pitfalls of one-off experiments while still allowing local innovation, Wingate said.
Looking Ahead
The GENIUS Act has effectively opened the door for credit unions to compete in the digital asset space. Whether through stablecoin tokens like $tx USD or through shared liquidity models, the next few years will show if stablecoins can deliver on the promise of faster, cheaper, and more flexible member service, Wingate explained.
For Wingate, the focus is on making sure the movement doesn’t get ahead of itself.
“We’ve spent the last four years building for this moment,” he said. “The last thing we can afford is a blowup that sets credit unions back 15 years just because someone wanted a headline.”
In other words, stablecoins may be the new frontier for credit unions—but like the wildcatters of the 1800s, success will depend on striking the right balance between boldness and caution, Wingate added.
By Ray Birch
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