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Infineo Mints $9 Million Policy on Provenance Blockchain
Life insurance is the latest mainstream financial product to receive the red-hot cryptocurrency tokenization treatment.
Infineo, a company that focuses on blockchain-based life insurance, said Tuesday that it has moved the “first” tokenized life insurance policy to a distributed ledger system. According to a press release reviewed by CoinDesk, the company minted policies worth a total of $9.4 million using the Provenance network.
The policies were tokenized with Provenance Blockchain Labs, the ecosystem development organization behind the Provenance network. Imineo said it is also developing secondary markets for tokenized policies that enable peer-to-peer transactions and new offerings supported by tokenized life insurance.
Infineo’s minting came at a time when traditional capital markets and cryptocurrencies are becoming increasingly intertwined, with institutions placing old-school financial products such as credit, bonds and private equity on blockchain networks in the form of tokens. The process is often referred to as tokenization of Real World Assets (RWA) and a report from Bank of America he said it could transform and disrupt legacy financial systems. Participants hope that tokenization can create more efficient systems, speed up regulations and increase transparency.
“Digitalization of life insurance policies not only unlocks global accessibility to life insurance, but also delivers efficiency and cost savings for industry stakeholders at every point along the value chain,” he said in a statement Infineo founder and CEO Cole Snell.
Infineo said the $3 trillion life insurance market could benefit from using blockchain binaries, for example protecting policyholders and beneficiaries from unclaimed benefits worth more than $7 billion.
The area of origin hosts active credit lines worth over 7 billion dollars, rwa.xyz data show, and has a total value locked (TVL) of $13 billion on-chain, according to The Provenienza website. It is a Cosmos-based blockchain created in 2018 by fintech lender Figure.