A blockchain initiative backed by a group of US credit unions has formed a new service organization dedicated to the tech.
As previously reported by CoinDesk, CULedger members are seeking to use blockchain in a bid to reimagine how they exchange data and provide services to their clients.
The project has grown steadily since its unveiling in 2016. Now, the credit unions that back it are forming what is known as a credit union service organization, or CUSO, centered around blockchain. A CUSO is a business entity, typically owned by a group of federally chartered credit unions, that provide certain services such as business loan originations or payment card processing.
In the case of CULedger, the CUSO will function as a bridging point between all of the credit unions that opt to link up with the project’s permissioned ledger.
Rudy Pereira, chairman of the CULedger steering committee, said in a statement:
“CULedger is an opportunity for credit unions to be leaders of innovation in financial services. Getting involved now in CULedger and CULedger, LCC will offer credit unions the ability to participate in shared-ledger technology that is on path to reshape the credit union industry as a whole in the years to come.”
While a big step for the group, the new CUSO isn’t operational yet. Over the next several months, CULedger will host events for credit unions in a bid to find investors.
As part of that search, CULedger will begin looking for a CEO to take the helm of the venture as well.
Ribbon cutting image via Shutterstock
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