Blockchain Technology Transforming the Future of Banking: A Look at Metallicus and BankSocial’s Innovations
The Future of Banking: How Blockchain Technology is Transforming Credit Unions
In a world where the excitement over the SEC approval of a Bitcoin ETF is met with regulatory actions against crypto exchanges, two companies are quietly revolutionizing the future of banking through blockchain technology. Metallicus and BankSocial are leading the charge in leveraging blockchain to transform the banking industry.
Metallicus launched the Metal Blockchain Banking Innovation Program in January, partnering with credit unions like Vibrant, Meritrust Credit Union, and Fairwinds to explore custom use cases using blockchain technology. Frank Mazza, director of blockchain and digital assets for Metallicus, highlighted the challenges banks face in deploying blockchain solutions and emphasized the need for resources and regulatory compliance.
On the other hand, BankSocial, operating on Hedera Hashgraph distributed ledger technology, offers a unique crypto exchange for credit unions and a Know Your Customer (KYC) solution. The company aims to establish ‘DeFy Federal Credit Union’ to create a template for credit unions to participate in a Web3 ecosystem.
The National Credit Union Administration’s guidance in 2022 supports the exploration of DLT technologies by credit unions, signaling a shift towards embracing blockchain technology. This move follows previous initiatives like CU Ledger, now known as Bonifii, which focused on protecting credit union customers from fraud with identity verification solutions.
As banks face regulatory hurdles in offering crypto services, credit unions are being courted by Web3 companies for partnerships and collaborations. The potential for credit unions to innovate with blockchain technology could position them as more technologically advanced than traditional banks in the future.
With companies like Metallicus and BankSocial leading the way, the future of banking may be shaped by blockchain technology, offering credit unions a competitive edge in the evolving financial landscape.
