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The conventional banks perhaps are currently superior in the financial sector, with regards to the assets they hold. However, recently credit unions have been experiencing a surge, and are a recognized alternative for Americans who meet their requirements.
Analysis indicate that credit unions in the United States are about 4,600. A statement in 2023 by the National Credit Union Administration (NCUA), stressed that about 139 million Americans have become part of credit unions that are federally insured. This is a 20% increase from past year.
Kyle Hauptman, who is the Vice Chairman of the NCUA, mentioned that tokenizing of smaller loans, which are not considered to be securitized in a bond can be very beneficial. Kyle emphasized that tokenization may be beneficial in data identification of reference user.
Managing Partner at Compliance Risk Management Firm, Ravi de Silva noted that tokenization may be useful in controlling compliance risks, by ensuring more efficiency, transparency, and security. As a result, credit unions have started adopting tokenization.