Denver-based firm CULedger, a blockchain consortium, and credit union service organization (CUSO) have declared that it is teaming up with R3, an enterprise software firm in order to improve the support for cross-border payments for credit unions on R3's Corda blockchain platform. The news was shared by the fintech news outlet Finetra on May 21.
Before few months, CULedger has successfully completed its target of $10 million Series A Funding. It has teamed up with the R3-led blockchain consortium in December 2018 and is also a member of the Hyperledger blockchain project.
In the press release on May 21, the Blockchain CUSO implements the technology in order to reduce risks linked with cybersecurity and fraud, streamline internal processes and decrease administrative and operational costs.
John Ainsworth, who is the president and CEO of CULedger said, "Blockchain is positioned to transform the financial services industry over the next few years, and CULedger is helping credit unions lead the way.”
CULedger's next product, known by the name CUPay, has specially designed to allow connectivity between payment networks and also decrease friction in cross-border electronic fund transfers.
CUPay, which is being scheduled for launch in 2020 will incorporate with R3's Open Source Corda-based application "Corda Settler."
Corda Settler allows payment duties which are raised on the Corda Blockchain to be fixed with any parallel payment rail which supports cryptocurrencies or assets, or any traditional payment rail which can offer cryptographic proof of settlement.
CULedger and R3 also said that the execution of Corda Settler will enable Credit Unions using the CULedger network to select from a wide variety of time-efficient, secure and affordable domestic or cross-border payments.
John Ainsworth added,
"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."
David E. Rutter, who is the CEO of R3 said, "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." He added, “We look forward to working with them to create significant efficiencies for credit unions and their members.”