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CULedger, a credit union service organization (CUSO) focused on distributed ledger technology (DLT), has entered into a partnership with IBM to deliver blockchain services for financial cooperatives and credit unions.
Using permissioned blockchain technologies, the companies plan to create an immutable audit trail that can be used to build new business models as well as transform existing business processes for credit unions.
“By creating a permissioned blockchain network where services can be shared among all credit unions, CULedger will improve services such as identification authentication, regulatory compliance around know-your-customer (KYC), lending and payments, while making it easier and more efficient for consumers to conduct any interactions that require authentication,” the release said.
Explaining this “cooperative model,” John Ainsworth, CEO and President, CULedger, said that they will create a network through which all credit union members can join and access new services, enabling them to become even more competitive while addressing new market dynamics.
CULedger has developed MyCUID, a consumer-focused digital identity solution that adheres to the privacy-by-design requirements of self-sovereign identity supported by the Sovrin Foundation.
According to the official release, credit union members will also have access to MyCUID, which will help them support shared financial services and allow them to conduct transactions among any credit union on the network.
“Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way. This decentralized approach using blockchain helps put the customer in control of their own identity,” said Marie Wieck, General Manager, IBM Blockchain.
“The work underway between CULedger and IBM will also lay the foundation for new kinds of services and collaboration among credit unions as we work together to scale and extend the network.”
IBM and CULedger intend to help drive greater financial inclusion by extending reach to a broader range of new members. Initial services on CULedger’s blockchain network will be available to credit unions around the world beginning later in 2019.
Announced by Credit Union National Association (CUNA) in 2016, CULedger aims to deliver innovative applications to credit unions through its cross-border global DLT platform. Earlier this year, it successfully raised $10 million in a Series A funding round.
