TruStage Pilots US Dollar Stablecoin (TSDA) for Credit Unions Following GENIUS Act Framework

TruStage, a financial services provider partnering with over 93% of US credit unions, announced the pilot launch of the TruStage Stablecoin (TSDA), a dollar-pegged digital asset issued in collaboration with blockchain infrastructure firm Block Time Financial.

The initiative, scheduled for the first half of 2026, positions TSDA as a payment and settlement tool for credit unions, with 1:1 cash reserves maintained by a TruStage affiliate, amid growing institutional adoption of stablecoins following the GENIUS Act’s federal framework for issuers.

Pilot Program Structure and Partnership

TruStage revealed on February 25, 2026, that it is recruiting credit unions to participate in an initial pilot program for TSDA, running through the first half of the year. The stablecoin is designed specifically for community-based financial institutions, leveraging TruStage’s 90-year history serving the credit union ecosystem.

The issuance structure involves a strategic分工 between the two firms. A TruStage affiliate will act as the official issuer of TSDA and will manage the token’s 1:1 cash reserves, maintaining full dollar backing with dedicated oversight. Block Time Financial will provide blockchain infrastructure and operational support, including security protocols and digital account capabilities.

Bruce Rosenheimer, CEO of Block Time Financial, stated, “We’re thrilled to see stablecoins gaining traction within financial institutions as an emerging payment infrastructure, yet one of the largest untapped segments is credit unions. The strong history and trust TruStage has built with credit unions allows it to create a widely adopted solution for the whole industry.”

Regulatory Context and GENIUS Act Impact

TruStage Ventures President and Managing Director Brian Kaas noted that the firm’s exploration of stablecoin solutions follows the passage of the GENIUS Act, which established federal standards for stablecoin issuers in the United States. The regulatory clarity has reportedly generated significant interest among credit unions evaluating digital payment infrastructure.

“In my career working with credit unions, I’ve never witnessed the level of engagement surrounding any technology advancement similar to what I’m seeing with stablecoin solutions right now,” Kaas said. “The regulatory clarity of the GENIUS Act created a buzz among these institutions, who increasingly recognize stablecoins as a powerful payment rail for financial institutions rather than speculative crypto assets.”

The pilot operates against a backdrop of broader congressional consideration of crypto market structure legislation, which has faced discussions regarding banking and credit union concerns about stablecoin yield offerings potentially drawing deposits away from traditional savings and checking accounts.

Expected Use Cases and Market Positioning

TruStage anticipates TSDA will serve multiple functions within the credit union network. Expected applications include loan funding and settlements, peer-to-peer transactions, cross-border payments, and inter-credit union settlements and disbursements. The firm emphasizes that the stablecoin aims to provide instant, low-cost money movement for institutions and their members.

Terrance Williams, President and CEO of TruStage, commented, “Stablecoins are changing how people and institutions move money, and they offer a valuable opportunity to expand access to financial services, which aligns with the TruStage mission. We’re committed to meeting partners and consumers where they are and creating innovative solutions to strengthen trust and inclusion in the digital economy.”

The initiative places TruStage among a growing cohort of traditional financial institutions exploring stablecoin integration. Major banks have begun examining similar applications, while crypto-native firms including Tether and Stripe subsidiary Bridge are pursuing issuance under federal oversight. Standard Chartered projects the global stablecoin market capitalization could reach $2 trillion by the end of 2028, potentially generating demand for up to $1 trillion in US Treasury bills.

FAQ: Understanding TruStage’s Stablecoin Pilot

What is the TruStage Stablecoin (TSDA)?

TSDA is a US dollar-pegged stablecoin being piloted by TruStage in partnership with Block Time Financial. It is designed specifically for credit unions to facilitate payments, settlements, and other transactions. Each TSDA token will be backed 1:1 by cash reserves held by a TruStage affiliate, ensuring dollar parity.

How does TSDA differ from other stablecoins like USDT or USDC?

TSDA is distinct in its focus on the credit union market, leveraging TruStage’s long-standing relationships with over 93% of US credit unions. While other stablecoins target general crypto market participants, TSDA aims to serve as a payment rail specifically for community-based financial institutions, with operational support tailored to their regulatory and compliance needs.

What role does the GENIUS Act play in this pilot?

The GENIUS Act established federal standards for stablecoin issuers in the United States, providing regulatory clarity that TruStage cites as a catalyst for credit union engagement with stablecoin technology. The framework allows issuers to operate with clear guidelines regarding reserves, disclosures, and compliance, facilitating institutional adoption.

When will credit unions be able to use TSDA?

TruStage is currently recruiting credit unions to join an initial pilot program running through the first half of 2026. The firm plans to expand eligibility to additional credit unions following the pilot phase, with no entry fee currently planned for participants.

Financial Backing and Operational Standards

TruStage emphasizes that TSDA will maintain rigorous reserve standards, with all issued tokens fully backed by cash reserves under dedicated oversight. The issuing TruStage affiliate holds an “A” (Excellent) rating from AM Best, reflecting strong financial standing.

Founded in 1935, TruStage provides insurance products, investment solutions, retirement plans, and other financial tools tailored for credit unions. The organization currently works with more than 93 percent of over 4,300 credit unions nationwide, which collectively hold more than $2 trillion in assets.