PSCU Testing CULedger’s Blockchain-Based Digital ID System

PSCU, the credit union service organization (CUSO), announced on Monday (Feb. 24) that it is finishing up a proof of concept (POC) with CULedger and Baxter Credit Union (BCU) for a blockchain-based decentralized identification platform.

CULedger’s MemberPass solution is a blockchain-based system that facilitates frictionless identity verification.

“Through PSCU’s partnership with CULedger, we have an opportunity to be at the forefront of determining the implications and opportunities surrounding distributed ledger technology as they relate to identity management – the first of which is MemberPass – for the credit union industry,” said Scott Young, vice president of innovation at PSCU. “Just as we are doing with MemberPass, we plan to continue applying knowledge gained from proof of concepts with CULedger to future opportunities and strategies on behalf of our owner credit unions.”

MemberPass offers credit unions (CUs) or CUSOs a single digital credential that serves as member verification. MemberPass can be utilized for numerous identification occasions, such as instant contact center verification, loan applications, large transaction approval, bill pay, external ACH and wire transfers. The platform enables fast deployment and scalability while also being available through the current digital identity mobile wallet application, Connect.Me.

“We are excited to partner with PSCU and BCU to improve the safety of members’ information and regulate the process by which they verify their identity,” said John Ainsworth, president and CEO of CULedger. “With each successful proof of concept and integration, members are that much closer to being in complete control of their identity and changing the way the world conducts financial transactions.”

During the proof of concept, PSCU and BCU included MemberPass verification in diverse processes after first focusing on contact center verification. BCU had test users generate digital identities in the MemberPass platform and download the Connect.Me application. They are now using it to verify their identities.

Among the goals of PSCU, CULedger and BCU with the proof of concept are defining the value of digital identity regarding authentication issues, proving that MemberPass relieves pain points, determining ease of integration and assessing digital identity benefits over existing methods.

PSCU said in November that it was planning to invest $100 million over the next few years to focus on improving solutions for the CUs it serves around the country.