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  • Writer's pictureRandy Ralston

Data vs Dollars: Bridging TradFi & DeFi in the Era of Streaming Money

The financial landscape is rapidly evolving, ushering in the era of 'streaming money' and digital assets. With the advent of FedNow, the shift toward real-time liquidity networks is undeniable. While these developments promise benefits, they also present challenges, especially for local and community financial institutions who are ill-prepared to safely bridge their traditional finance models with real-time, decentralized ledgers.

Savvy financial leaders recognize the need to adapt to this transformative period by embracing the responsibility to educate their members and safeguard digital assets in all forms, securing the 'keys' to a prosperous digital future. DaLand's CODE Engine Digital Vaulting empowers trusted community cooperatives and credit unions to follow a responsible, regulated, revenue generating path to relevance.

For community-based financial institutions, the advent of real-time payments raises pertinent questions about combating deposit outflows and reclaiming capital converted into digital formats. Failure to properly monitor outflows to crypto brokerages and exchanges has already cost hundreds of millions to credit union balance sheets, causing many institutions to rethink their strategic priorities.

In this changing landscape, institutions like St. Cloud Financial Credit Union exemplify strategic prescience. By acknowledging the importance of digital asset custodianship, they are positioning themselves for relevance and resilience in the digital asset era. Their approach sets a precedent for other community financial institutions seeking to navigate this transformative period.

To thrive in this era, local financial institutions must move beyond legacy database structures and 3rd party bolt-on 'solutions' and integrate core-driven digital asset custody seamlessly into their operations. Institutions that proactively embrace this shift position themselves to not only survive but also flourish in the digital asset era.

St. Cloud's proactive stance illustrates how institutions can adapt and succeed amid these changes. By devising comprehensive strategies to reclaim and retain deposits in all forms, and by promoting financial literacy and digital transformation, local financial entities can ensure their sustained relevance and contribute to community prosperity and wealth preservation.

As we navigate the era of FedNow and the digital dollar, success hinges on strategic planning, innovation, and a commitment to decentralized financial stewardship. Local institutions, armed with a willingness to evolve and collaborate, will secure their place in the future of digital assets and 'streaming money.' Embracing digital asset management is not merely a step forward but a fundamental necessity for survival and relevance in the rapidly evolving world of finance.

By partnering with DaLand CUSO, you’ll gain the confidence and peace of mind that comes with engaging a team that has a proven track record earning us a reputation as ‘the’ trusted partner in the industry. Already on a modern core and ready to build a digital vault? Comparing core vendors and overwhelmed by the conversion process ahead? Regardless where you are at in the journey, we are here to help. Contact Us and let’s get started today!

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