#4181: What Minnesota Legislation That Allows FIs to Provide Digital Asset Custody Means to Credit Unions...

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Chase Larson, EVP & Chief Lending Officer at St. Cloud Financial Credit Union, stopped by the show to share the big news about Minnesota legislation that would allow financial institutions to provide digital asset custody -- and what this new legislation means for not only Minnesota credit unions but credit unions nationwide.

Chase explained that St. Cloud Financial partnered with the Minnesota Credit Union Network to craft the legislation, which was signed by the state's governor and will take effect on August 1, 2026, making Minnesota the first state with a framework for financial institutions to custody digital assets.

He added that the legislation addresses concerns about digital asset deposit outflows leaving local communities and positions credit unions to compete with neobanks, while maintaining member relationships and local liquidity. St. Cloud Financial has already launched a CU Digital Asset Vault for their 28,000 members, though currently operating as safekeeping rather than custody, and plans to launch a stablecoin pilot in June and expand their Bitcoin Lightning payments capabilities later this year.

Pretty cool stuff from the fine folks at St. Cloud Financial, so check it out and let us know your thoughts. And be sure to watch the entire episode below for all the details.