CULedger , a CUSO will be working with the international technology company IBM for creating a decentralized, immutable auditing trail that will help transform the current industry. The service will primarily consist of authentications, such as Know Your Customer (KYC), lending, digital identity and other consumer authentication processes.
Using blockchain will allow for a wider inclusion of credit union services and firms. This means doors opening in an industry with more than 260 million users and USD 1.7 trillion in transferred assets.
General Manager of IBM Blockchain division, Marie Wieck, said, “Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way.”
The service, called “MyCUID”, will give credit unions the access to CULedger verified and issued credentials. This will allow any union member to authenticate and transaction made between credit union members globally. The service is expected to be launched by the end of this year.
A cooperative model that helps improve the member experience while benefitting all credit unions is the ideal approach to ensuring the next wave of financial innovation for the credit union industry,” said John Ainsworth, CEO and President, CULedger. “We are creating a network through which all members can join and access new services and enabling credit unions to become even more competitive while addressing new market dynamics where members are demanding even more for their financial services provider.
IBM and Blockchain
IBM, as a technology based company, is actively working on a number of different decentralized projects. All of them are aimed towards the enterprise level.
It has already announcedthe release of an enterprise level blockchain security tool. The tool is released by its X-Force Red security team and is aimed to detect vulnerabilities in blockchain ecosystems.
Other partnerships include combating child laborin mining industries that provide precious metals for vehicle batteries and crude oil supply chain for the Abu Dhabi National Oil Company.