Developed from a blockchain consortium, CULedger seeks to expand its payments range and business. It’s since announced a partnership with Hedera, a DLT (Distributed Ledger Technology) startup company that offers a distributed consensus system.
— Hedera Hashgraph (@hashgraph) May 1, 2018
The two companies will be collaborating to create a more extensive payments network, improving the speed of cross-border payments. While also using Hedera’s existing hashgraph system, which provides improved security between users making the network trustless.
In a blog post by members of the Hedera team, they explained that CULedger will be using Hedera’s hashgraph system in its already existing project, MyCUID to optimise a payment structure behind MyCUID's digital identity network.
The decision by CULedger to push for a partnership with Hedera is an attempt to significantly increase the speed of cross-border payments.
A study by McKinsey research, on cross-border payments in 2017, found:
“The average margin on a cross-border consumer-to-consumer transaction today is 635 basis points, compared to 6 domestically, due to the greater complexity, the additional foreign exchange revenues, and the premium positioning of the service.”
As a company, CULedger demonstrates a modernization of the US Credit Union towards a faster more secure system based on blockchain technology.
COO of CULedger, Rick Cranston stated that the partnerships with Hedera and Evernym are an attempt to counter the prevalence of criminal activity involved in DLT transactions conducted by anonymous users stating:
“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.”