CULedger Integrates R3’s Corda Settler To Support Blockchain Cross-Border Payments

Blockchain, News | May 21, 2019 By:

Credit union industry blockchain initiative CULedger has expanded its partnership with blockchain firm R3 to further support domestic and cross-border payments for credit unions worldwide on the Corda blockchain platform.

CULedger is a Credit Union Service Organization (CUSO), comprised of more than 30 credit unions and other industry organizations, that focuses on delivering innovative applications to credit unions through its cross-border global distributed ledger platform. It provides advantages to credit unions and their members by reducing risks associated with cybersecurity and fraud, improving member experience, streamlining internal processes and reducing administrative and operational costs.

In December 2018, CULedger joined R3’s global network of more than 200 of the world’s largest financial services firms, technology companies, central banks, regulators, and trade associations working together on Corda, an enterprise-grade blockchain platform that removes costly friction in business transactions. At the time, John Ainsworth, president and chief operating officer of CULedger, said that being part of R3’s global blockchain ecosystem will play a part in their ability to develop additional use cases beyond digital identities for credit unions and their members.

In its latest announcement, CULedger said that Corda will now serve as the underlying basis for CULedger’s new electronic funds transfter (EFT) product, CU Pay. 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 reportedly 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.

“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 noted that CU Pay is not intended to replace existing EFT networks, but enable connectivity of multiple payment networks. The new EFT product is targeted for release in early 2020 and will be made available to credit unions on CULedger’s network.

“Blockchain is positioned to transform the financial services industry over the next few years, and CULedger is helping credit unions lead the way,” said Ainsworth. “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.”