RANCHO CUCAMONGA, Calif. – Co-op Solutions is partnering with NYDIG, a custodial cryptocurrency exchange that has been working with a number of credit unions.
Co-op said it is making the move to “empower members to access digital assets safely and securely via their credit union’s digital banking interface.”
Co-op said NYDIG is joining its newly launched Strategic Provider Program, which the CUSO said is designed to give credit unions access to pre-vetted, best-in-class products and services outside of Co-op’s core offerings and to help streamline their procurement processes.
As CUToday.info reported, earlier this month, Co-op unveiled the program by announcing its first two partners, Origence and SavvyMoney All three providers will be at Co-op’s CUNA GAC conference booth #741 to discuss the program on Feb. 28, at 8:15 a.m. ET, Co-op said.
‘Best in Class Providers’
“Co-op’s partnership with NYDIG further reinforces our commitment to identifying best-in-class providers in markets that represent opportunity for credit unions,” said Dean Michaels, chief strategy officer for Co-op. “NYDIG has built its reputation by meeting the highest compliance, audit and governance standards and has interacted with the NCUA on many digital asset issues. We are also impressed by NYDIG’s extensive pre-built digital banking integrations that allow for streamlined onboarding for thousands of credit unions and a white glove support model for every stage of the client lifecycle.”
Added Co-op in announcing the partnership, “NYDIG offers solutions that unlock the power of digital assets through technology and institutional-grade finance for regulated financial institutions. Co-op is partnering with NYDIG to promote its digital asset platform, which is currently live and launching with more than 35 credit union clients.
‘An Ideal Ally’
“NYDIG’s conservative posture on compliance and risk management makes it an ideal ally for credit unions who are new to the emerging digital asset space. NYDIG maintains appropriate licensing, including with the NYDFS (New York State Department of Financial Services), allowing it to operate in nearly every state,” the company continued. “The company is registered with FinCEN and offers hands-on expert assistance and documentation to help clients with internal governance around digital assets.”
In addition, Co-op explained, digital assets acquired through NYDIG’s platform are held in a highly secure cold storage custody environment, developed and maintained by NYDIG and not connected to any routable network.
“NYDIG has settled more than $90 billion of digital asset flows in their custody system since inception in 2017 without interruption. Digital assets custodied by NYDIG through its credit union partnerships are held in trust, available for sale by members at any time and are never commingled with NYDIG’s own assets,” Co-op said.
Increased Visibility
Rahm McDaniel, head of business development for NYDIG, said the company is proud to be part of the Co-op program, which it expects to drive visibility and awareness.
“Credit unions have experienced significant deposit outflows to external digital asset exchanges over the past few years – and, sadly, have seen members harmed by failures at some of those lightly-regulated exchanges,” McDaniel said. “By embedding our platform into digital banking, credit unions can keep assets in their ecosystem and protect members by providing a well-vetted, highly-regulated, Big-4 audited digital asset solution within their existing member experience.”
According to Co-op, collaborating with “best-in-class providers” – particularly fintechs – and helping credit unions better compete in today’s demanding marketplace are at the heart of the Strategic Provider Program. Co-op said it plans to continually expand its roster of approved providers.
Additional Information
Additional information is available here.
Co-op clients interested in connecting with program providers can visit the webpage here.
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