CULedger, a credit union service organization or CUSO, announced a collaboration with Tech giant IBM to provide blockchain services for financial cooperatives and credit unions around the world.
Credit union-owned CULedger said it will work with IBM to use permissioned blockchain technologies to create an immutable audit trail. With this, credit unions can create new business models and enhance existing business processes.
Initial services on CULedger’s blockchain network will be available to credit unions worldwide beginning later in 2019.
By creating a permissioned blockchain network, CULedger will improve services such as identification authentication, regulatory compliance around know-your-customer, and lending and payments.
CULedger CEO and President John Ainsworth noted that the network will enable credit unions to become even more competitive while addressing new market dynamics where members are demanding even more for their financial services provider.
Credit union members worldwide will also have access to a CULedger issued digital credential, called MyCUID.
It will will help credit unions support shared financial services which allows members to conduct transactions among any credit union on the network.
At present, the credit union industry serves more than 260 million members worldwide with over $1.7 trillion of circulating assets.
According to CULedger, the adoption of blockchain technology will help build continued momentum among all demographics, as well as small and medium enterprises that currently lack access to financial services.