Novel products, novel risks

The financial industry is no stranger to risk. Risk produces YIELD, and it turns out that responsible risk maximizes margins. This … is banking. However, the emergence of digital assets and new payment networks introduce a unique set of challenges and opportunities.

We recently helped a credit union launch “CU Digital Asset Vault,” a first-in-the-industry solution to the first new asset class in over 40 years (and innovative way to keep a community FI plugged into the future of money).  However, we didn’t just slap together some mobile wallet or external bolt-on solution as a quick entry into the space. We worked side by side with the credit union’s leaders and members, building a long-term strategy, phased methods for stepping into this novel space responsibly, in a regulatory sound way, and anticipating legislation and operational realities which will inevitably arise.  We call it “The R Path” to digital assets.  Together, we carefully navigated this opportunity with a shared vision to serve as an advocate for the members and communities – a vital mindset when looking to provide solutions around ALL the ways people conduct financial transactions.

The result; a strategy for responding to deposit runoffs, a path for liquidity to return to the FI, and a technical bridge between traditional banking and the new world of digital assets and streaming money data – like Bitcoin, US Dollar Coin, and Ethereum.

 

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