A new credit union service organization (CUSO) called CULedger LLC has formed to provide credit unions with shared ledger technology.
CULedger is a credit union industry initiative that uses blockchain technology to develop innovative applications of distributed ledger technology. It is supported by Credit Union National Association (CUNA) and is designed to benefit credit unions and their members by reducing risks associated with cybersecurity and fraud, improving member experience and cutting costs.
Credit unions will have a majority ownership in the newly formed CUSO.
“CULedger is an opportunity for credit unions to be leaders of innovation in financial services,” Rudy Pereira, president and CEO of Premier America Credit Union and chairman of the CULedger steering committee, said. “Getting involved now in CULedger and CULedger, LCC will offer credit unions the ability to participate in shared-ledger technology that is on path to reshape the credit union industry as a whole in the years to come.”
Shared-ledger technology creates an online system through which multiple certified parties can securely exchange information and conduct transactions with those exchanges certified by all the organizations– participating in the network.
CULedger began in 2016 as an endeavor between CUNA and Mountain West Credit Union Association to develop a concept for a credit union system-wide permissioned distributed shared ledger platform. It has since grown with collaboration between CUNA, the Mountain West Credit Union Association, Best Innovation Group, and other credit union system partners.
CULedger is planning informational sessions for credit unions interested in investing in the new CUSO in September and October. There will also be a search for a CEO for the blockchain network following the investor sessions.