A consortium of U.S. credit unions, CU Ledger have been exploring a wide range of private blockchains and has recently added IBM Hyperledger Fabric solution into its list. It is reported that the tech giant IBM is partnered with blockchain consortium (CUSO) CULedger in order to innovate existing business models and processes with the help of blockchain-based solutions for the credit union industry. The announcement was made in a press release on 11th March.
According to Big Blue, the consortium will use IBM’s tech in order to develop “an immutable audit trail that can be used to create new business models and transform existing business processes for credit unions.” These solutions can improve consumer processes that require authentication such as Know Your Customer compliance, digital identity authentication, lending and payments services. IBM underlined that the first blockchain-based solution will be available to CULedger members “later in 2019.”
CULedger’s chief experience officer, Julie Esser said:
“The use of a specific blockchain platform will be dependent on each particular application or use case that is being developed. Our partners, such as IBM, Evernym and Sovrin, each play a role within our overall strategy and solutions. We are not replacing any of the relationships that we have previously announced.” She further added:
“CULedger is building a network of networks that will facilitate the peer-to-peer exchange of anything digital. As we continue to develop our solutions, there will be applications better suited for different networks, and CULedger will enable those networks to interact with each other.”
Leveraging blockchain will offer greater financial inclusion by extending access to financial services across various analytics that includes over $1.7 trillion of circulating assets along with 260 million credit union members. The IBM and CULedger partnership will offer credit union members across the globe with the access to the customizable CULedger-issued digital credential dubbed as “MyCUID”. MyCUID will authenticate financial transactions between members of any credit union on the network. The general manager at IBM Blockchain, Marie Wieck quoted:
“Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way.”