What is the CU Ledger project?
CU Ledger is a Credit Union Service Organization (CUSO) which focuses on delivering innovative blockchain-based solutions for credit unions. The goal of the project is to improve cybersecurity and mitigate fraud risks, as well as to streamline administrative and operational processes for the credit union industry.
CU Ledger began by developing the MyCUID initiative which will give credit union members lifelong portable digital identities. MyCUID will provide credit union members globally with access to the customizable CULedger-issued digital credential which can reportedly be used to authenticate financial transactions between members of any credit union on the network. For this offering, CU Ledger partnered with Evernym who developed a flagship set of protocols contained in the non-profit company called Sovrin, an open source global identity network for self-sovereign identity. The self-sovereign identity, ‘SSI’ will:
enable trusted interactions to occur between individuals, institutions, and businesses
Two more recent CU Ledger projects are CUPay and its connectivity to Corda Settler.
CUPay is a cross-border payments product. CULedger has chosen enterprise blockchain firm R3’s Corda blockchain to underpin this forthcoming product. This is a consortium blockchain project meaning it is a group of organizations that are working together to form a mutually-trusted environment with a permissioned blockchain. A permissioned blockchain is different from a public blockchain like Bitcoin where anyone can join and participate in the network. A permissioned blockchain requires as it implies, proper credentials in order to join the network, and typically has no native incentive protocol such as mining built into the framework.
CUPay is designed to enable connectivity between payment networks reducing friction in cross-border electronic funds transfers. It has an estimated launch of ‘sometime in 2020’. It will integrate with another R3 blockchain project called Corda Settler.
From R3 Corda’s website:
Corda Settler provides a bridge to any payment rail that can return a cryptographic proof of settlement. This includes any ‘traditional’ domestic and cross border payment systems able to return such a proof, as well as blockchain and cryptocurrency-based rails.
CUPay integrating with Corda Settler will enable credit unions using the CULedger network to choose from a range of secure payment solutions using traditional currencies or cryptocurrencies in the event that cryptocurrencies gain more adoption. The payments solutions can be domestic or cross-border. Ripple’s XRP token is the first cryptocurrency to be supported by Corda Settler as an experiment in enabling the use of a cryptocurrency on this network.