US Credit Unions Will Use DLT to Expand Payments Business

CULedger – the credit union services firm that grew out of a blockchain-focused consortium effort – is partnering with DLT startup Hedera to build a public system for cross-border payments.

Unveiled Tuesday, the deal will see the two firms collaborate on a public network based on Hashgraph, a kind of distributed ledger technology (DLT) created by the software company Swirlds.

The Hedera Hashgraph will be paired with a new global identity solution, MyCUID, in an effort o build what CULedger calls “a comprehensive system” for identity and global payments.

Rick Cranston, COO of CULedger, states the current cross-border payments as a “painful” process for parties involved, due to its high costs, limited visibility into transactions and more time involved.

He went on to say:

“Hashgraph is fast and it provides visibility between the two parties at a significantly lower cost. It also eliminates concerns regarding fraud and default, since transactions are recorded immutably on the public ledger, and manual processes, since transactions are automated via smart contracts.”

“CULedger continues to lead the financial services industry in innovative ways to apply distributed ledger technologies to the huge challenges that financial services firms and individuals face in making timely, secure, cost-efficient payments, be they across the country or around the world,” Mance Harmon, CEO of Hedera Hashgraph, said in a separate statement.

Business miniature image via Shutterstock

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