CULedger has expanded its partnership with enterprise software firm R3 to further support domestic and cross-border payments for credit unions, also known as financial cooperatives, worldwide, on the Corda blockchain platform. Corda will serve as the underlying basis for CULedger’s new electronic funds transfer (EFT) product, CU Pay.
CULedger is leveraging its relationship with R3 to help credit unions reduce risks associated with cybersecurity and fraud, improve the member experience, streamline internal processes and reduce administrative and operational costs. CU Pay is not intended to replace existing EFT networks, but enable connectivity of multiple payment networks.
As part of this partnership, CULedger will integrate CU Pay with Corda Settler, an open source CorDapp designed to settle Corda transactions with any of the world’s payment systems, both traditional and blockchain-based. This will allow credit unions using CULedger’s network to choose from a variety of near-instant, secure and affordable domestic and cross-border payment options to meet theirs and their members’ needs.
“Blockchain is positioned to transform the financial services industry over the next few years, and CULedger is helping credit unions lead the way,” said John Ainsworth, president and CEO of CULedger. “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.”
“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,” said David E. Rutter, CEO of R3. “We look forward to working with them to create significant efficiencies for credit unions and their members.”
CULedger initially joined R3’s global network in 2018. The network consists of more than 300 of the world’s largest financial services firms, technology companies, central banks, regulators, and trade associations working together on Corda. CULedger has taken a mixed chain approach to the services it provides by partnering with established blockchain leaders in addition to R3, including IBM, Hedera and The Sovrin Network to allow interoperability and portability of transactions for credit unions and their members.
CU Pay is targeted for release in early 2020 and will be made available to credit unions on CULedger's network.