The National Credit Union Association (NCUA) recently released NCUA Letter 22-CU-07 discussing the use of distributed ledger technology (DLT) by credit unions. The NCUA has taken the position that credit unions are not prohibited from developing, producing, or using DLT when deployed for permissible activities and in compliance with applicable laws and regulations.
The NCUA recognizes that new technologies may transform how credit unions perform traditional financial operations and services but encourages credit unions to remain alert to new or evolving risks. The letter outlines several risk factors for credit unions to consider when using DLT including information and cybersecurity risk, legal and compliance risk, strategic and reputation risk, liquidity risk, and third-party risk.
CS continues to monitor this development for any impact to our solution and will inform our clients and partners of any required changes.
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