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CULedger, a Credit union service organization (CUSO) focused on distributed ledger technology (DLT), has unveiled a new payment solution that’s been developed on the back of R3’s Corda blockchain platform. Digital strategy and software engineering firm Luxoft has also been involved in its creation.
Called CUPay, this new electronic fund transfer (EFT) payment solution allows credit unions to send funds to its members, both domestically and internationally, a press release read.
This new form of payment provides credit union and its members another option to transfer funds with added transparency along the entire process. Commenting on the solution’s success, CULedger chief experience officer Julie Esse said that transparency is but the tip of the benefits that CUPay will bring to its users.
“Current payment methods, especially cross-border payments, rely on outdated, slow technology laden with risk. CUPay gives credit unions and their members an alternative option – one that is more secure, protecting both members and the organization, and more efficient, in terms of speed, cost, and transparency. This is the technology of the future, and we are ecstatic that credit unions will be among the first financial services organizations to provide this service,” Esse said.
Speedy, secure, and seamless
First announced in May and unveiled during CordaCon 2019, CUPay uses Corda to identify organization members. This is bolstered by CULedger’s MyCUID that is anchored to Sovrin, a digital personal ID network that is used for self-sovereign identity (SSI).
The solution also has a Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols that can be intermeshed with multiple networks. With this, there’s no need to manually enter a recipient’s details, while simultaneously ensuring that credit unions are following standard compliance set by regulatory bodies.
Improving the current system
Antony Welfare, managing director, Blockchain Practice at Luxoft, said that this partnership has also helped them improved their identification technology. He expressed his excitement over the CUPay solution and is interested to see how it will transform the current payment system.
“We have partnered with CULedger, using R3’s Corda platform, to expand our expertise in SSI (Self Sovereign Identity) technology, helping ensure that the peer-to-peer transactions are secure, validated and auditable. The solution we built for CULedger ensures the member’s identity is kept secure, while all information required for KYC, AML, and regulators remains accessible for audits,” Welfare said.
