By Landon Manning
IBM (IBM) is teaming up with a group of credit unions based in Denver, Colorado, to pursue the integration of blockchain technology.
Forbesdescribed some of the specifics surrounding this plan, which will see IBM and CULedger offer blockchain-based services “to help credit unions provide their members with greater efficiencies and an enhanced user experience.”
CULedger has an international reach with credit unions in several nations worldwide.
The main thrust of this plan is to create an immutable audit trail using blockchain technology “to create new business models and transform existing business processes for credit unions.”
Considering the borderless nature of blockchains, this initiative pairs up nicely with CULedger’s stated goal of reaching users abroad. Forbes noted that the total assets of credit unions worldwide are valued at nearly $2 trillion.
Last December, CULedger got its first serious taste of enterprise blockchain software when it became a part of R3’s decentralized ecosystem. Running apps on its Corda distributed ledger, R3 has made several attempts to transform the distributed ledger technology space with enterprise applications.
This new partnership with IBM should provide CULedger with greatly expanded potential for working with overseas credit unions. Currently, IBM also operates live blockchain projects across “financial services, supply chain, government, retail, digital rights management and healthcare sectors” all around the world. Forbes reported that in the last year and a half, the company has undertaken new initiatives with major companies based in Denmark and China.
John Ainsworth, CULedger’s founder and CEO, claimed that a “cooperative model that helps improve the member experience while benefiting all credit unions is the ideal approach to ensuring the next wave of financial innovation.”
He added that his company is “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.
Forbes also described some of the specifics of a new digital identity credential that CULedger will be implementing, called MyCUID. Using blockchain technology to create a self-sovereign identity system, this program will allow users to participate with any member credit unions worldwide.