WASHINGTON–World Council of Credit Unions (WOCCU) has released a new white paper that examines how stablecoins are reshaping the financial infrastructure that credit unions and other cooperative financial institutions rely on to serve their members.
According to WOCCU, the white paper, How Digital Money Is Impacting Credit Unions, Part 1: Focus on Stablecoins, is the first in a planned three-part series exploring how emerging forms of digital money are affecting the global credit union movement.
“The report begins by noting that stablecoins are no longer a niche fintech development, but part of a broader structural shift in how money is stored, moved and regulated,” WOCCU explained. “As commercial banks, payment networks, technology firms and retailers build stablecoin offerings or integrate stablecoin rails into their platforms, credit unions must consider how these changes could affect deposits, payments, member relationships and long-term institutional relevance.”
For credit unions, stablecoins are not simply a new product category or technology trend, the organization added, stating “they represent a strategic inflection point because they touch two core functions of the cooperative model: holding members’ savings and helping members move value.”
‘Changing the Infrastructure’
“Stablecoins are changing the infrastructure beneath payments and deposits, and credit unions cannot afford to view that shift from the sidelines,” Paul Andrews, WOCCU VP-international advocacy, said in a statement. “The question is not whether every credit union should issue or offer a stablecoin. The question is whether the cooperative system will have the legal authority, regulatory flexibility and strategic readiness to participate in the next generation of financial infrastructure in ways that protect members and preserve the cooperative difference.”
Three Key Areas Highlighted
The white paper highlights three key areas credit union leaders should consider:
Stablecoins as a Strategic Issue for Credit Unions
The paper explains how stablecoins could affect the deposit and payment relationships that sit at the center of the cooperative model. If member activity moves to wallets and platforms outside the credit union system, credit unions risk retaining the account while losing the critical member relationship.
The Need for Proportionate Regulation and Coordinated Advocacy
WOCCU said the paper examines how regulatory frameworks are developing across jurisdictions and why credit unions need clear, proportionate pathways to participate in digital money infrastructure. It also underscores the importance of ensuring policymakers understand the cooperative model before regulatory frameworks become final.
Governance, Risk and Member Engagement
The paper encourages boards and senior management to approach stablecoins as a governance and strategic planning issue, not a technology decision. It provides a framework for evaluating system readiness, risk exposure, member education needs, third-party partnerships and potential opportunities for collective action through shared cooperative structures, WOCCU added.
According to the organization, the paper also emphasizes that the risks of inaction are significant, including potential deposit displacement, reduced payment activity, loss of member data visibility and exclusion from emerging payment rails. At the same time, it identifies opportunities for credit unions to use their strengths — member trust, local accountability, community presence and mission alignment — to remain trusted financial partners as digital money evolves.
‘The Mindset Needed Now’
“Credit unions have always adapted to meet members where they are,” Andrews said. “That same mindset is needed now. Through education, advocacy, investment and collaboration, cooperative financial institutions can help shape digital money systems that are safe, inclusive and accountable to the people and communities they serve.”
Future papers in the series will focus on tokenized deposits and central bank digital currencies, followed by a model regulatory framework for all forms of digital money.
The full white paper is available here.
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