CULedger, a consortium of American credit unions exploring potential use cases for distributed ledger technology, has teamed up with blockchain specialist Hedera to develop a global ledger for cross-border payments.
CULedger will use Hedera's hashgraph platform and public ledger to build the system, which will work in conjunction with CULedger's MyCUID digital identity offering.
The partners claim that the new service will help reduce the cost and complexity of cross-border consumer-to-consumer payments, which currently are far more expensive to make than domestic transactions.
Rick Cranston, COO, CULedger, says: "Currently, cross-border payments are painful for all parties involved. They take time, they're expensive, and there is limited visibility into the transaction.
"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."