Host: Well, the Genius Act alongside fresh support from the NCUA is driving a pivotal transformation across credit unions, and this is speeding up their shift from cautious digital asset observers into active market participants. Now Saint Cloud Financial Credit Union is pioneering the integration of digital assets into traditional banking services, becoming the nation's first credit union to issue its own cooperative stablecoin. Its new digital asset vault offers members a secure framework to hold and manage leading tokens including Bitcoin, Ethereum, and USDC. While joining us live to discuss how credit unions are navigating the digital shift is Chase Larson, EVP, Chief Lending Officer and leader of digital asset strategy at St. Cloud Financial Credit Union. Great to have you here. Thank you so much for joining me.
Chase Larson: Thank you. Good morning.
Host: Well, here we are in Las Vegas at Money. 20, there are a lot of conversations taking place on the ground about where we are in the cycle when it comes to SRATFI and DeFI and everything in between. So first and foremost, give us a sense of what you're working on right now and also what exactly Deland is.
Chase Larson: Yeah, so currently, um, uh, we've, uh, Saint Cloud Financial Credit Union partnered with Deland back in originally back in 2021. Uh, we launched our, um, uh, vault in June of 2024 that lets our members hold things like Bitcoin, Ethereum, USDC right alongside their checking and savings account. Uh, at Saint Cloud, we're currently working on deploying the transact space, so it'll let our members interact with Bitcoin Lightning Network right from online banking driven directly from our core infrastructure. Um, Deland is a 16-year-old credit union service organization that has been serving the industry for the last 16 years, and they are the only, um, fintech in the market that has a core-centric digital asset product that will allow credit unions to vault digital assets, tokenize deposits, stablecoins, buy, sell, and lend against things like Bitcoin, uh, driven from their core. I think the important part is it's the only solution on the market that actually will allow the credit union or community bank to not further fragment the member relationship and actually the ability to keep that liquidity in-house versus outsourcing it to um a third party where they're just an API into the online banking provider.
Host: And for attendees of a conference such as Money 2020, people may understand the why, but for people who are watching from the nation's airport gates or hotel lounges, business lounges right now, and they're asking about the why of what you're doing, what would you say to them?
Chase Larson: I think we have an opportunity as credit unions to use infrastructure like Coin Decor to scale our charter to the next level. Um, we're watching consumers, number one, you know, we've watched this in the past, right? There's nothing new under the sun. We watched the adoption of plastic cards. Uh, driven by retailers cause it was faster, cheaper, more secure. We're watching the same thing happen happen with Bitcoin. Uh, DeLand is a Bitcoin leading company for that very reason, right? Uh, we've seen an announcement earlier this week, 175 million merchants using Lightning Network. And so, um, I think credit unions and community banks need infrastructure like this to stay relevant to our members, uh, to have a solution that actually stops liquidity bleed and allows it to stay in our local community. And then number 3, we're, we're gonna, um, and we're watching this occur already, the largest wealth transfer in history down to younger generations who, you know, a lot of these individuals have been using tokens or tokenomics with games since they, they were younger or are still young.
Host: Yeah, and I think you bring up a very important point, because when we're talking to the younger generation, sometimes the focus may be on Gen Z, but we have to consider that as people live longer, there will be 5 generations, sometimes coexisting at once, and this could mean uh Gen Alpha as well, and they are born with smartphones. Devices in their hands, basically. So there is opportunity here. But one thing that's also stood out amongst the many conversations I've had here on the ground is trust, security, especially in the age of artificial intelligence. So what is your perspective on those topics?
Chase Larson: Yes, I think trust is increasingly becoming more and more important. It's, you know, I think the one thing is we see a lot of providers, um, a lot of, um, vendors that are making splashes in the market and all these fancy announcements. And to your point about trust, uh, Dean's the only FinTech to have a level 4 security certification from the Government Blockchain Association. So we focused on trust as a company. I think to your point as we watch it, or your question as we watch Agentic AI. Uh, an agent settlement, agent to agent, I think, I think like, uh, things like Shaw 256 or the, the Bitcoin security, uh, or encryption become more important, and then we're gonna need rails that allow us to scale into the AI future as well.
Host: Mhm. And of course when we are talking about financial assets, there's always, uh, volatility in addition to risk mitigation. So how are you approaching? volatility and risk.
Chase Larson: Yeah, I think, um, you know, we see the volatility in things like Bitcoin because it's priced in US dollars, right? A lot of members or consumers don't understand the significant volatility with the US dollar, right? Look at the inflation, uh, so we don't always measure the volatility the same. I think the second piece is you're gonna have people that, um, members or customers that hold things like. Bitcoin as a scarce asset, but then you're gonna have the other part of the population, maybe the older members could be younger, I suppose it's not age specific, that are interacting with things like Bitcoin Lightning Network without holding the underlying asset, right? So you tap to pay at one of these, uh, 100, you know, one of these merchants in the announcement earlier this week. Dollars to Bitcoin across the lightning network back to dollars. And so, I think there's really two paths here for for leveraging the technology.
Host: And of course, at a conference such as this, we do have to address what's happening on the regulatory landscape. So, there is a lot that has happened on the legislation front when we're talking about digital assets. But in your area, what do you think needs to happen as we head into 2027?
Chase Larson: I think we need to see more um clarity for lack of a better way to say it, right? No pun intended. But I also think community banks and credit unions should use this moment as a gift. Um, we've seen, um, over the last year because of the Genius Act, I think it's done two things. One, it's created stablecoin mania, and stablecoins have become the topic of conversation. But if we look at the economics, we live in a debt-based society and if institutions really understand. How stablecoins operate, uh, it's, it's not going to be the use case long term at mass scale, maybe for money and movement. Um, so I think we've, we've seen the Genius Act spark, uh, traditional finance, financial leaders to start strategizing who weren't prior. And then I think the second thing is we need to use this moment as a gift for those that don't have a strategy. Don't squander this time we've been given.
Host: And finally, before I let you go, I understand that you have said banks face a blockbuster moment if they don't take Bitcoin seriously. So why is that?
Chase Larson: 100%, right? If we look at society, um things that are faster, cheaper, more secure went out over time. Uh Burger King went on national television in the 90s, accepted a plastic cart. And we all know where cards are at today, right? I have 6 of them or 5 of them in my wallet. And so I think if we, um, if we continue to think that this is just a fad or something cute over here, I think we have a real, uh, threat of, um, uh, it obliterating our industry if we don't get in the game here and serve our members how they want to be served.
Host: And finally, before I let you go, this is the time of year that we start looking back to 2026, everything that has transpired, but also looking ahead to the new year and trends that are happening on the ground here. So what are you focused on in less than 60 seconds?
Chase Larson: Yeah, I think continuing to be a Bitcoin leading credit union, Bitcoin leading fintech at the land. 12, continuing to educate members, employees in the community. Uh, I think we have a duty as financial leaders to continue to help educate, uh, the communities we operate in. Um, help, uh, focus on fraud mitigation tactics and provide safe ways for our members to secure assets no matter the form they take on.
Host: Well, Chase, it was great having you here on the show. Thank you so much for making time for us and thank you so much for sharing your insights and your perspective.
Chase Larson: Thank you. My pleasure.
