St. Cloud Financial CU and DaLand show how AI and DeFi can keep member money, data, and trust inside the credit union—without chasing crypto hype.
AI, DeFi, And The Future Of Credit Union Money
Most credit unions already have members moving money into crypto, stablecoins, and DeFi. The problem is that most of that activity happens outside the credit union relationship, with zero visibility and zero guidance from the institution members actually trust.
Jed Meyer at St. Cloud Financial Credit Union saw that pattern five years ago. He went from skeptical about digital assets to launching a white‑label stablecoin with DaLand CUSO’s Coin2Core platform. That shift wasn’t about chasing hype. It was about keeping member wealth in the local community and staying relevant in a tokenized, AI‑driven financial system.
Here’s the thing about the future of money: it’s data-first and member-first. AI for credit unions isn’t just about smarter chatbots or faster underwriting. It’s about understanding how members already use digital assets, then building safe, trusted experiences around that behavior.
This article breaks down what Jed and Jon Ungerland (CIO of Information/Innovation at DaLand CUSO) are actually doing, and how AI‑driven credit unions can claim a meaningful role in the emerging digital asset ecosystem.
Why Digital Assets Are A Member Experience Problem, Not A Technology Problem
The core issue isn’t, “Should we offer crypto?” The real question is, “Do we want to be present where our members’ money is moving?”
Members already:
- Buy crypto on retail exchanges
- Move money into stablecoins to send funds cheaply
- Experiment (or get burned) in DeFi protocols
- Follow social‑media‑driven “investment advice” with no guardrails
When all of that happens outside the credit union, you get three big risks:
- Visibility risk – Your data picture is incomplete. Transaction data doesn’t show the full financial life of the member.
- Relationship risk – The daily money relationship shifts to apps that feel more responsive, more convenient, and more “modern.”
- Community risk – Assets leave the local ecosystem and won’t easily come back into your deposit base.
“We have to get into the game of convenience so we can continue to prove that credit unions are the best financial institutions for consumers to partner with.” – Jed Meyer
The convenience game in 2025 absolutely includes digital assets. But this is where AI becomes the differentiator. Instead of bolting on a speculative trading widget, AI‑enabled credit unions can:
- Detect digital‑asset‑related flows in member accounts
- Surface proactive financial guidance
- Create member‑centric digital asset journeys that align with local, cooperative values
If you skip digital assets entirely, you’re effectively telling your most digitally active members: “You’re on your own with that part of your financial life.” That’s not a winning position.
What St. Cloud & DaLand Are Actually Doing (And Why It Matters)
St. Cloud Financial Credit Union didn’t start by betting the farm on crypto. They started by asking a simple question: How is the digital asset space impacting our members’ financial lives?
Five years ago, Jed Meyer was skeptical. Over time, patterns became hard to ignore:
- Younger members were moving cash off‑platform to exchanges
- High‑value members were asking questions about digital custody and tax implications
- Staff didn’t have tools or education to respond with confidence
That’s where DaLand CUSO came in, with data and digital tools driving the strategy.
Coin2Core: Connecting Credit Unions To DeFi Safely
DaLand’s Coin2Core is essentially a bridge: it connects the traditional core banking environment to DeFi networks and tokenized money on your terms.
From a credit union perspective, this can look like:
- A white‑label stablecoin branded to your institution
- Integration with your core so stablecoin balances and fiat balances are visible together
- Automated on/off ramps for members who want to move between deposit accounts and tokenized assets
Here’s why this matters:
- You keep the relationship. Members don’t have to abandon your app to participate in digital assets.
- You keep the data. Every token movement becomes part of your AI training set, enriching member profiles.
- You keep the mission. You can design products so digital assets still support local lending, community impact, and member equity.
I’ve found that the credit unions that move fastest aren’t the ones with the fanciest tech teams. They’re the ones whose leadership is honest about where member behavior is going, then partners for the right capabilities.
Education: The Non‑Optional Layer
Jed’s big emphasis is education—for leaders, staff, and members. This is where AI for credit unions pairs naturally with DeFi and digital assets.
Practical moves you can make:
- Train AI assistants on your own digital asset policy, risk appetite, and FAQ so staff always have a “copilot” when members ask questions.
- Use AI to generate personalized education in plain language based on member behavior (for example, “We noticed a transfer to a crypto exchange. Here are three things to watch for.”).
- Build simulation tools where members can “test drive” digital asset concepts with fictional balances, guided by AI chat.
Credit unions are already trusted as community anchors. Combining that trust with AI‑powered guidance on next‑generation money is a powerful position.
Where AI Fits: Turning Digital Asset Chaos Into Member‑Centric Intelligence
AI is the only realistic way for most credit unions to handle the complexity of digital assets at scale. The key is to stop treating AI like a bolt‑on tool and start treating it like an intelligence layer across your ecosystem.
Here’s how that looks in practice.
1. AI‑Driven Member Insight Around Digital Assets
AI models can analyze transaction histories and external signals to answer questions like:
- Which members are regularly sending funds to known exchanges?
- Who is showing unusually volatile balance patterns consistent with speculative trading?
- Which demographic segments are most active so you can target education and new products?
This kind of segmentation lets you:
- Flag vulnerable members who might be over‑exposed
- Spotlight members who’d benefit from digital custody, tax guidance, or risk education
- Feed marketing and product teams with evidence‑based opportunities
2. AI‑Powered Member Service Automation
When members ask about crypto, DeFi, or your stablecoin offering, your front line shouldn’t have to guess.
An AI member service stack can:
- Answer common digital asset questions in your mobile app, 24/7
- Hand off high‑risk or complex conversations to human specialists with full context
- Provide scripted, compliant responses aligned with your risk posture
The difference between a generic chatbot and a credit‑union‑grade AI assistant is governance. Train it on:
- Your disclosures and regulatory constraints
- Your board‑approved stance on digital assets
- Your product catalog and pricing
3. Fraud Detection And Transaction Monitoring
Digital assets invite new fraud and scam patterns, but AI is very good at pattern recognition across:
- Unusual outgoing wire activity to exchanges or OTC desks
- Sudden spikes in P2P payments related to “investment clubs”
- Patterns that match known crypto‑recovery scams or romance fraud schemes
AI for fraud detection allows you to:
- Intervene with preventive education (“We see this pattern often tied to scams.”)
- Apply stepped‑up authentication where risk is high
- Tune controls over time as your stablecoin or tokenized money offerings grow
Done well, members feel protected, not policed.
Designing A Member‑Centric Digital Asset Strategy (In 6 Steps)
There’s a better way to approach digital assets than waiting for a vendor pitch or a board panic moment. A practical, member‑centric playbook looks like this:
1. Map Current Member Behavior
Use your data—and AI where possible—to answer:
- What percentage of members interacts with known crypto exchanges?
- How much deposit outflow per month is going to those platforms?
- Are certain SEG groups, age bands, or income levels heavily represented?
This baseline tells you whether digital assets are a marginal hobby or a core part of member financial lives.
2. Decide Your Risk And Mission Posture
Be explicit about:
- What you will support (for example, stablecoin rails, tokenized deposits, education)
- What you will not support (for example, direct speculative trading recommendations)
- How digital assets should connect back to your community strategies
Put this in writing. Make it the lens for vendor conversations and AI configuration.
3. Start With Education, Not Product Hype
Launch an “AI for financial wellness and digital money” program where:
- Members can ask questions about crypto and DeFi through secure channels
- AI gives consistent, non‑promotional guidance aligned with your policy
- Human advisors are available for higher‑stakes conversations
If you don’t educate, someone else will—and they probably don’t share your fiduciary mindset.
4. Pilot A Controlled Digital Asset Offering
Follow the St. Cloud / DaLand example and pilot:
- A white‑label stablecoin or tokenized deposit product
- Limited initial functionality (for example, peer‑to‑peer transfers and bill pay)
- Clear limits, disclosures, and automatic monitoring
Use AI to:
- Monitor adoption and transaction behavior in real time
- Collect structured feedback from members and staff
- Adjust risk rules based on actual use, not assumptions
5. Integrate With Your AI Credit Union Stack
Tie digital asset data into:
- Credit decisioning models (better risk views with full cash flow)
- Member 360 profiles for marketing and member experience
- Financial wellness tools that “see” both fiat and token balances
The future of AI for credit unions is omnichannel and omni‑asset. A member who holds $5,000 in a stablecoin with you isn’t just “low deposit.” They’re “high relationship potential” if you actually see the full picture.
6. Communicate Your Values Clearly
Members don’t need you to be the coolest crypto app. They need you to be:
- Transparent about risks and protections
- Honest about what you offer and why
- Consistent in how you apply your cooperative principles to new forms of money
This is your competitive edge against fintechs and exchanges: a clear, values‑driven story about why your digital asset strategy exists.
Why Credit Unions Can’t Wait On Tokenized Money
Jon Ungerland is blunt about this: leaders across finance and technology are already heavily invested in tokenized, blockchain‑based money. That train is moving whether credit unions participate or not.
If you wait, three things happen:
- You become a pass‑through. Members treat you as a short‑term staging point for funds before sending them to other platforms.
- You lose data advantage. AI models built on partial transaction data will underperform and misjudge risk.
- You look outdated. For younger and more digital‑native members, a lack of digital asset awareness reads as “out of touch.”
The upside of acting now is bigger than just retention:
- You can shape how digital assets support local lending and community impact, instead of watching that value flow elsewhere.
- You can train AI systems on richer, more complete financial lives, meaning smarter decisions for loans, collections, and wellness.
- You can claim a differentiated position: “AI‑powered, member‑centric money for the next 20 years, not the last 20.”
This matters because the AI for credit unions story shouldn’t be limited to internal efficiency. It should be about owning your role in the future of money and making sure your members don’t navigate that future alone.
Where To Go From Here
If you’re a credit union leader, the question isn’t whether your members are touching digital assets. They are. The question is whether you’ll treat that reality as a risk to avoid or an opportunity to serve better with AI‑driven, member‑centric tools.
You don’t need to start with complex DeFi products. Start with:
- A data assessment of member digital asset behavior
- A clear, board‑aligned digital asset stance
- An AI‑assisted education and support program
From there, explore partnerships—like St. Cloud did with DaLand—to bring tokenized money into your ecosystem on your terms.
The future of money is programmable, tokenized, and increasingly shaped by AI. Credit unions that embrace that shift thoughtfully can stay exactly what they’ve always been at their best: the most trusted financial institutions for members to partner with, no matter how money itself evolves.