CULedger, a credit union service organization (CUSO) that focuses on delivering a network of one-to-one financial exchange for credit unions, has now unveiled a viable proof-of-concept version of CUPay, a secure electronic funds transfer (EFT) payment solution that is built on R3’s Corda blockchain platform.
The CUPay project explored CULedger’s decentralized identity technology and how it can enable a rail-agnostic solution. With the successful completion of the CUPay project, credit unions leveraging CULedger’s network will be able to choose from a variety of near-instant, affordable and secure payment options, both domestically and internationally, to better meet the needs of their members conducting transactions.
First announced back in May, CULedger’s EFT solution gives members, credit unions and other stakeholders access to additional modes of transferring funds while allowing for a more transparent process from beginning to end.
“Current payment methods, especially cross-border payments, rely on outdated, slow technology laden with risk.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.”
– Julie Esser, chief experience officer of CULedger
CUPay utilizes R3’s Corda for organizational identity and CULedger’s MyCUID, which is anchored to digital personal ID network Sovrin, for self-sovereign identity (SSI). The solution provides integrated KYC and AML services and can be integrated into multiple networks, eliminating the need for manual entry of recipient details and providing built-in compliance management for credit unions.
By leveraging Corda Settler, an application that allows payment obligations raised on the Corda to be made through any of the world’s payment systems, CULedger can integrate additional payment rails as they become available. Further, CUPay provides members with a deeper sense of visibility than traditional methods and will be continuously updated to reflect new advancements.
“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. We are excited to continue our work with CULedger and Corda as we build out more solutions for credit unions.”
– Antony Welfare, managing director, Blockchain Practice at Luxoft
To support quick adoption amongst credit unions, CULedger is leveraging the digital strategy, consulting and engineering services of Luxoft. CUPay is slated for release in 2020 and will be made available to credit unions on CULedger’s network of digital exchange.
“CUPay will enable credit unions to move even-closer towards cross-border payments that are executed seamlessly and successfully. That is why R3 is proud to be the partner to support CULedger’s initiative, which will allow its members to transact more efficiently. We look forward to seeing CULedger continue to achieve success and transform the way that payments are executed.”
– Cathy Minter, Chief Revenue Officer at R3