CrossState and Metallicus Open Digital Identity and Stablecoin Sandbox to 50 Credit Unions

CrossState Credit Union Association and Metallicus have launched Innovation Program 2.0, a structured pilot giving an initial cohort of 50 credit unions across New Jersey and Pennsylvania sandbox access to digital identity, stablecoin, blockchain, and faster payment infrastructure for evaluation and testing.

CrossState serves more than 400 credit unions representing over $93 billion in assets and 5.9 million members across New Jersey and Pennsylvania. Metallicus is a Credit Union Service Organization that builds and operates blockchain, digital asset, and stablecoin infrastructure for credit unions in-house, without reliance on third-party technology providers.

The program’s six strategic exploration areas are: faster payments and digital wallet infrastructure; credit union-branded stablecoins; digital identity and fraud prevention; compliance automation and auditability; treasury management workflows; and cross-border payments. The digital identity component is positioned as a fraud prevention tool, reflecting credit union sector concerns about account takeover, synthetic identity fraud, and member authentication in digital channels. J.P. Morgan’s 2026 payments outlook has also flagged digital identity as a core fraud-defense layer for financial institutions adapting to faster settlement and account-to-account payments.

The centerpiece testing tool is a Stablecoin Sandbox that allows participating credit unions to test credit union-branded stablecoin issuance without using real funds, reserves, or member accounts. Participants can explore issuance models, permissions, transaction flows, and governance structures in a simulated environment. Digital identity testing is similarly sandbox-based, enabling credit unions to evaluate identity verification and fraud-prevention integrations before committing to production deployments.

“Credit unions are looking for practical ways to better understand how emerging technologies may impact payments, operations, fraud prevention, and member experience,” said Patrick Conway, President and CEO of CrossState Credit Union Association. Frank Mazza, Director of Blockchain and Digital Assets for Credit Unions at Metallicus, said the 50-credit-union commitment “creates immediate momentum for collaborative learning.”

Metallicus has previously launched similar programs with the MD|DC Credit Union Association and Cornerstone League, and with individual credit unions including Arizona Financial Credit Union and One Nevada Credit Union in earlier stablecoin pilots. The CrossState program is among the largest coordinated blockchain and digital identity initiatives among regional US credit union associations. The pilot reflects the identity requirements that accompany stablecoin adoption, a theme that credit union technology providers have increasingly addressed through cooperative fintech structures.

Sources: PR Inside, Finopotamus, CUInsight

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By the ID Tech Editorial Team