Blockchain Credit Union Consortium to Use R3’s Corda for Cross-Border Payments Product
CULedger, a blockchain consortium and credit union service organization, has chosen R3’s Corda blockchain.
CULedger, a blockchain consortium and credit union service organization (CUSO), has chosen enterprise software firm R3’s Corda blockchain to underpin its forthcoming cross-border payments product. The news was reported by fintech news outlet Finextra on May 21.
As reported, CULedger joined the R3 global blockchain ecosystem in December 2018.
The blockchain CUSO implements the technology to improve cybersecurity and mitigate fraud risks, as well as to streamline administrative and operational processes for the credit union industry. CULedger also provides a specific blockchain-based identification solution for credit union members.
CULedger’s forthcoming product, dubbed CU Pay, has reportedly been designed to enable connectivity between payment networks and thus reduce friction in cross-border electronic funds transfers.
Slated for launch in 2020, CU Pay will reportedly be integrated with R3’s open source Corda-based decentralized application “Corda Settler.”
Corda Settler enables payment obligations raised on the Corda blockchain to be settled via any parallel payment rail that supports cryptocurrencies or assets, or otherwise any traditional payment rail that can provide cryptographic proof of settlement.
CULedger and R3 have reportedly stated that the implementation of Corda Settler will allow credit unions using the CULedger network to choose from a range of cost- and time-efficient, secure payment solutions — whether domestic or cross-border.
As Cointelegraph has reported, CULedger has also partnered with tech giant IBM to jointly develop new solutions using permissioned blockchain networks which will innovate existing business models and processes for the credit union industry.
Over 260 million credit union members — with over $1.7 trillion of circulating assets — are estimated to exist worldwide.