Credit unions weigh wallet access as members test digital assets

Only 7% of credit union members said their institution supports cryptocurrency transactions, while 67% said they did not know whether that service was available, according to a PYMNTS Intelligence report produced with Velera. The findings point to a potential retention issue for credit unions as younger members form payments, investing and digital asset habits across apps and financial providers.

The report, The Wallet Effect: How Credit Unions Can Close the Digital Currency Access Gap, found even higher uncertainty around stablecoins. Seventy percent of members were unsure whether their credit unions supported them.

Younger members showed more interest than the broader member base. According to PYMNTS Intelligence, 54% of millennials reported at least moderate interest in digital currencies. Among millennials and Generation Z members, 27% said they knew their credit unions offered crypto services.

Velera’s CU Growth Outlook research added a longer-term commercial dimension. It projected Gen Z spending at $12.6 trillion globally by 2030, equal to nearly one-fifth of worldwide consumer spending. For credit unions, the question is whether members build more of their financial activity inside existing credit union channels or establish those relationships elsewhere.

Wallets as the first layer

The research does not point to direct crypto trading as the immediate answer for every institution. It shows that access through digital wallets can alter member interest and may give credit unions a way to test demand without building a full digital asset operation at the outset.

PYMNTS Intelligence found that strong millennial interest in cryptocurrency increased to 35% when access was offered through a digital wallet, from 31% otherwise. For stablecoins among credit union members, strong interest rose to 12% through a wallet from 5% for direct payments.

A wallet can act as an entry point inside a credit union’s digital channel. That structure allows an institution to add or withhold services as demand becomes clearer, rather than committing immediately to a broader set of digital asset products.

The report also cited operational constraints. Building digital asset services internally can require custody capabilities, transaction processing, security controls, compliance procedures and specialist technology. It recommended that credit unions consider FinTech partnerships that may reduce some operating and compliance burdens while preserving the member relationship in the credit union’s own channels.

That model has limits. A provider can supply technology, but the credit union remains responsible for vendor oversight, risk controls and judgments about whether a product fits its membership, according to the report’s framing.

Member education is therefore part of the operating model. The report said credit unions need to explain distinctions among cryptocurrency, stablecoins and wallet-based access, including differences in purpose, risk and function, before treating stated interest as evidence of durable product demand.

Wallet use, questions from members and participation in education programs may also give credit unions evidence of where demand is emerging before they allocate substantial resources to direct digital asset offerings.

This story draws on original reporting from PYMNTS.