By Ray Birch
BREMERTON, Wash.— When Washington lawmakers quietly expanded state-chartered credit unions’ investment authority three years ago, few expected a credit union to seize the opportunity so quickly or so strategically.
Kitsap Credit Union is the first in the state, and among the first in the nation, to take advantage of the new power to make equity investments, using it to step directly into the innovation economy.
Instead of merely buying software or signing another vendor contract, Kitsap is investing in the source of the technology itself.
The $2.3-billion credit union has received approval from the state Department of Financial Institutions (DFI) to make an equity investment in D8TAOPS, Inc., an Oregon-based company specializing in AI-driven data orchestration. The partnership gives Kitsap not only access to cutting-edge tools but also a seat at the design table helping shape the very systems it will rely on in years ahead.
“This is a transformative moment not just for our organization, but for the credit union movement as a whole,” said Shawn Gilfedder, Kitsap’s president and CEO. “Through this strategic investment and design partnership, we’re helping shape the future of financial services—all while ensuring our members benefit from smarter, faster, and more secure experiences.”
Why Kitsap Chose To Invest—Not Just Partner
Gilfedder said the move was driven by a recognition that traditional vendor relationships no longer offer the agility or depth needed to keep pace with emerging technology and regulations.
“We see the evolution in technology and recognize that having great partners working alongside us to help design and engineer our systems is critical,” he told CUToday.info. “Investing gives us a deeper understanding of what’s emerging. We’re not just buying products—we’re seeing how innovations develop across industries, from healthcare to transportation, and applying that thinking to financial services.”
The new RCW 31.12.436 statute, which broadened state-chartered credit unions’ ability to make limited equity investments, was written precisely for this purpose—to bring credit unions closer to the design phase of innovation rather than leaving them as end users. Kitsap’s investment, which falls well below the law’s 5% of net worth limit, aligns with the intent of giving financial cooperatives the ability to participate in the technology ecosystem they depend on.
“The passage of the RCW was meant to get technology opportunities closer to credit unions,” said Gilfedder. “It lets us be part of the engineering process where most financial institutions don’t usually have access. That’s a real advantage.”
A Platform For Modernization And Member Impact
Through its partnership with D8TAOPS, Kitsap is modernizing its data infrastructure to enable real-time insights, automation, and personalization. The company’s platform turns legacy data workflows into governed, “agentic” AI systems capable of secure, enterprise-grade operations.
Kitsap has already piloted one use case—an audit process that saw dramatic improvements in accuracy and efficiency. The credit union was also able to build a private language model within a secure cloud environment, a foundation that Gilfedder said will support future member-facing tools and experiences.
“Our business model has always been about operational excellence, but this step helps us become more effective—more personalized,” he said. “We’re preparing for a future where open banking, cloud-based data exchange, and AI-driven financial wellness tools all intersect. To serve members well in that world, we need a foundation that allows us to move fast and safely.”
The Broader Implications
Industry observers say Kitsap’s move illustrates how credit unions can rethink their role in technology development. By becoming part owners of innovative firms, they can secure earlier access to tools, ensure alignment with cooperative values, and even realize financial returns.
For Gilfedder, the value is also philosophical.
“This is our opportunity to innovate at scale across our membership base,” he said. “Never before have credit unions had such an opportunity. It’s about building systems that allow for hyper-personalized experiences while staying true to our mission and member-first principles.”
D8TAOPS founder and CEO Troy Wyatt called Kitsap’s approach “a model for how credit unions can govern data responsibly while innovating faster.” He added, “By uniting Kitsap’s forward-thinking leadership with our platform, we’re proving that credit unions can set the standard for what’s next in financial services.”
A Glimpse Of What Could Come
Gilfedder also believes Washington State’s example could ripple outward.
“What’s happening here could easily expand to the federal level,” he noted, “opening the same opportunity for more credit unions nationwide.”
For now, Kitsap’s move positions it at the forefront of a regulatory and strategic frontier—one where credit unions can not only adopt new technologies but help build them.
“As a cooperative, we’ve always believed in ownership and shared value,” Gilfedder said. “Now, we’re extending that principle into the innovation economy itself.”