CUNA announces initiative to build credit union blockchain platform

Rage Comment : The National Credit Union Association of the United States is a non-profit organization that provides services to its internal members, so this platform development project around blockchain technology is only open to the public. Its purpose is to respond to the global blockchain technology trend through internal system adjustments. Make full use of the technical advantages of blockchain to improve the efficiency, security and speed of various financial transactions. Currently, only 125 cooperatives have pledged to join the project.

Translation: Annie_Xu

The Credit Union National Association (CUNA), a nonprofit trade group that serves more than 7,000 credit unions across the U.S., recently launched the CU Ledger Initiative, a proof-of-concept project, at America’s Credit Union Conference.

Credit Union Times said that CUNA Chief Operating Officer Rich Meade revealed information about the project at the meeting. Next, it will work with the Mountain West Credit Union Association (MWCUA) to adjust the credit union's response strategy under the globalization trend of blockchain.

The concept is to build a "permissioned distributed shared ledger" or blockchain platform within the credit union system, which has the potential to improve the efficiency, security and speed of various financial transactions. The system will only be open to credit unions and their service agencies.

Credit Union Times reported that CUNA and MWCUA hope to get 125 credit unions involved in the development of the first blockchain platform. Meade said he has received verbal commitments from the following institutions: Royal Credit Union, Chartway Credit Union, American Heritage Federal Credit Union, and three credit union service agencies, CO-OP Financial Services, PSCU and CUDL.

“That’s why we developed the proof of concept. We didn’t know if the credit unions would participate, if they wanted to be innovators. We certainly hoped they would, but we couldn’t be sure.”

Meade said the number of credit unions that want to participate in testing and evaluating the blockchain technology system could be double the expected 125. The program is open to cooperatives of any asset size, and those that want to join must pledge $10,000 to offset research costs.

In the coming months, CUNA and MWCUA and other system stakeholders will begin developing the CU Ledger Initiative. Meade stressed that the shared ledger platform will benefit credit unions and their members in many ways. The initiative includes joining a credit union industry-specific, independent payment system and improving data security for potential financial and identity applications.

"This potential platform can become the next generation shared branch network. This is not an isolated step, but a leap into the future. This is a game changer."