CULedger, R3 team up to expand payment options for credit unions
CULedger, a Denver-based credit union service organization, on Tuesday said it is expanding its partnership with R3, a software provider, to support credit unions using the Corda blockchain platform to make domestic and cross-border payments.
The CUSO, which oversees a cross-border distributed ledger platform, said Corda will serve as the underlying technology for CULedger’s new electronic funds transfer product, CU Pay. CU Pay is expected to launch in early 2020. When it goes live, it will be made available to credit unions on CULedger's network, the company said.
According to CULedger and R3, their expanded cooperation will assist credit unions in reducing fraud, help make members’ experience better, improve internal processes, and reduce costs both on the administrative and operational fronts.
CU Pay is designed to connect with multiple payment networks. The two companies said CULedger will integrate CU Pay with Corda Settler, which settles transactions with other payment systems, both traditional and blockchain-based.
According to John Ainsworth, president and CEO of CULedger, the integration of CU Pay and Corda Settler will allow credit unions using CULedger’s network to increase their access to “near-instant, secure and affordable” domestic and cross-border payment options.
“Blockchain is positioned to transform the financial services industry over the next few years, and CULedger is helping credit unions lead the way,” Ainsworth said in a statement. “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 Rutter, CEO of R3. “We look forward to working with them to create significant efficiencies for credit unions and their members.”
R3 operates a global network of more than 300 financial services firms, technology companies, central banks, regulators and trade associations, all operating on Corda. CULedger joined this network in 2018.