CULedger Bolsters Blockchain Bet
CULedger's move will integrate its upcoming electronic funds transfer product, CU Pay.
Denver-based fintech CUSO CULedger announced it has expanded a partnership with an enterprise software firm that is supplying a blockchain platform for its new EFT product.
CULedger said the move will integrate its upcoming electronic funds transfer product, CU Pay, with open-source settlement capabilities on the Corda blockchain platform from enterprise blockchain software firm R3. That in turn will reduce cybersecurity and fraud risks, as well as streamline processes, cut costs and improve the member experience, the organizations said.
Credit unions using CULedger’s network will be able to choose from a variety of domestic and cross-border payment options, it added.
CU Pay is targeted for release in early 2020 and will be available to credit unions on CULedger’s network, according to the announcement.
“Blockchain is positioned to transform the financial services industry over the next few years, and CULedger is helping credit unions lead the way,” CULedger President and CEO John Ainsworth said. “By integrating R3’s Corda Settler, we are certain that our vision of financial cooperatives operating across a shared network will be realized, and that members will stand to benefit from the transparency, security and efficiency it provides.”
Back in 2018, CULedger joined the R3 network, which includes 300 financial services companies, banks, regulators and trade associations.
“Corda’s unique approach to privacy and security will support CULedger’s efforts to develop ground-breaking blockchain-based applications for self-sovereign digital identity and fraud detection,” R3 CEO David Rutter said.
CULedger, a consortium of U.S. credit unions exploring potential use cases for distributed ledger technology, recently completed a $10 million Series A funding round for its blockchain-based digital ID solution. Forty credit unions and organizations contributed to CULedger’s investment group.
Earlier this year, the CUSO also announced a partnership with Columbus, Ohio-based Sherpa Technologies to develop tokenized credentials that streamline and secure the authentication process for credit union members.