NCUA Clarification: 3rd Parties Providing Digital Asset Services

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The National Credit Union Administration (NCUA) has provided clarity about the already existing authority of federally insured credit unions (FICUs) to establish relationships with third-party providers that offer digital asset services to the credit unions’ members, provided certain conditions are met.

This includes third-party provided services to allow FICU 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.

As insurer, the NCUA does not prohibit FICUs from establishing these relationships. The authority for federal credit unions (FCUs) to establish these relationships is described in section II of this letter.

The authority for federally insured, state-chartered credit unions (FISCUs) to establish these relationships will depend upon the laws and regulations of their states.

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