US Credit Unions Launch CULedger Blockchain Alliance

In August, U.S. credit unions held their first meeting to research distributed ledger technology (DLT) and formed CULedger, a consortium similar to R3CEV’s banking blockchain.

CULedger wants to do what R3CEV did for banks

CULedger, which is seeking to emulate R3CEV in allowing participants to benefit from blockchain technology, is raising funds among credit unions and credit union service organizations (CUSOs).

According to Finextra , companies already participating in the alliance include the National Credit Union Association, Best Innovation Group, the Mountain West Credit Union Association and PSCU.

“This is something the credit union industry is working on,” the participants said in a joint statement.

According to their plan, the goal will be to unite credit unions and credit union service organizations to create a ledger network specifically for credit unions, closely following the work of global banks in the R3CEV consortium.

The ultimate remittance application of distributed ledgers is also often used to describe the application of blockchain technology in the traditional financial field, and it will also be widely used.

“It’s used for custody of assets, improved record keeping, support for remittances and clearing, and even automated contracts,” said George Peabody of Glenbrook Partners, a research firm that previously worked with PSCU on a blockchain white paper.

“It’s early days for blockchain technology, and new applications based on blockchain will change the way all types of assets are transferred and recorded. It’s time to pay attention to it.”

A cliché?

Discussions on the use of blockchain in traditional institutions have been questioned. Notably, the word “decentralized” was omitted in favor of streamlining current processes. Some believe that these exclusions have the effect of removing the essential qualities of blockchain from the final products of these projects.

An August article in CUTimes reported that CULedger is a permissioned, distributed, shared ledger platform.

However, comments surrounding the CULedger process are that a targeted product is being created to allow other industries to follow current trends.

“The collaborative effort of credit unions, industry advocates and partners participating in CULedger represents a way to achieve greater efficiencies within the industry, which is a core business interest of credit unions,” said Chuck Fagan, CEO of PSCU.

Once the preparations are complete, the technology will be available to credit unions across all asset classes.