CULedger, a credit union service organization (CUSO) that focuses on delivering the world’s premier network of one-to-one financial exchange for credit unions, unveiled a viable proof-of-concept version of CUPay, a highly secure electronic funds transfer (EFT) payment solution that is built on R3’s Corda blockchain platform.
CUPay, announced earlier this year in partnership with Luxoft, a DXC Technology Company, and using R3’s Corda Platform, was formally unveiled at CordaCon 2019, R3’s annual flagship conference covering the latest developments on Corda and the growing network of providers. 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. 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“Current payment methods, especially cross-border payments, rely on outdated, slow technology laden with risk,” said Julie Esser, chief experience officer of CULedger. “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.”
CUPay utilizes R3’s Corda for organizational identity and CULedger’s MyCUID, which is anchored to Sovrin, for personal identity. 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 which 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,” said Antony Welfare, managing director, Blockchain Practice at Luxoft. “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.”
“CUPay will enable credit unions to move even-closer towards cross-border payments that are executed seamlessly and successfully,” said Cathy Minter, Chief Revenue Officer at R3. “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.”