OneAZ Credit Union joins blockchain banking innovation program
One of Arizona’s largest credit unions is exploring the potential for blockchain technology in the financial industry.
OneAZ Credit Union has joined San Francisco-based Metallicus’ Banking Innovation Program by Metal Blockchain in a move that provides access to expertise in potential use cases of the emerging technology, the credit union announced Tuesday.
The program is designed to support financial institutions’ journey into blockchain technology at no cost. It enables financial institutions to navigate and adopt customized blockchain solutions, ensuring compliance with regulatory standards while addressing their distinct operational demands.
The credit union’s decision to join the program is intended to enhance the banking experience for its members while increasing access to financial services, said Brandon Michaels, president and CEO of OneAZ Credit Union.
“The Banking Innovation Program will help us determine possible use cases where we could potentially leverage this technology,” Michaels told the Business Journal. “There’s tremendous hope that blockchain will transform the industry by elevating the level of efficiency, security and transparency.”
For the credit union’s members, that could mean enhanced privacy, smoother and quicker transactions, streamlined loan approvals and easier account openings, Michaels said.
“Member experience is paramount, and blockchain technology has the potential to elevate that standard through more personalized services and providing increased access to financial products and services,” he said.
Program participants can collaborate with other credit unions and Metallicus’ team of developers to explore various applications, such as private subnets, digital identity solutions, tokenization, loan participation, deposit participations, data storage, stablecoins and more.
The program also provides access to fintech partnerships, research and development grants and opportunities to pilot blockchain technology, according to Metallicus.
OneAZ Credit Union is among eight financial institutions nationwide participating in the Banking Innovation Program, which Metallicus announced in January.
“OneAZ Credit Union joining our Banking Innovation Program signifies a crucial advancement in our quest to innovate the financial sector with blockchain technology,” Frank Mazza, director of blockchain for Institutions and fintechs at Metallicus, said in a statement. “We’re eager to collaborate with OneAZ Credit Union, offering them the tools and resources to champion innovation and navigate the ever-shifting financial landscape.”
Metallicus and Dallas-based fintech BankSocial both aim to gain regulatory support for their blockchain innovations in the financial industry after the National Credit Union Administration voiced its support in 2022 for exploring distributed ledger technologies, wrote Bitcoin policy expert Jason Brett in a recent Forbes column.
Metallicus’ program is not the first exploration of blockchain technology by credit unions. In 2016, the Credit Union National Association and the Mountain West Credit Union Association spearheaded CU Ledger, a project based on distributed ledger technology, according to the Forbes column.
CULedger in 2021 changed its name to Bonifii and operates as a credit union service organization.
OneAZ Credit Union serves more than 185,000 members and operates 20 branch locations in Arizona. According to Business Journal research, OneAZ Credit Union is the second-largest credit union in the state, ranked by total assets.