July 1, 2024
By Sharan Kaur Phillora
In a move for the insurance industry, Infineo has successfully tokenized $9.4 million worth of life insurance policies on the Provenance blockchain. This marks a significant step forward in the growing trend of tokenizing real-world assets (RWAs) on blockchain networks.
Here’s what we know:
Infineo, a blockchain-based life insurance company, minted what it claims to be the world’s first tokenized life insurance policies on the Provenance Blockchain Mainnet. This achievement represents a major advancement in bringing traditional financial products into the digital asset space.
Cole Snell, CEO of Infineo, emphasized the transformative potential of this technology, stating, “The digitization of life insurance policies not only unlocks global accessibility to life insurance but also delivers efficiencies and cost savings for industry stakeholders at every point along the value chain.”
The tokenization of life insurance policies is poised to bring significant advantages to the $3 trillion life insurance market. One potential benefit is protecting policyholders and beneficiaries from over $7 billion worth of unclaimed benefits.
Infineo is not stopping at tokenization alone. The company is also developing secondary markets for these tokenized policies, enabling peer-to-peer transactions and introducing new offerings backed by tokenized life insurance policies. This development aims to provide policyholders with greater flexibility and new financial opportunities.
This initiative is part of a broader trend where traditional financial markets and the crypto industry are increasingly converging. Institutions are now placing conventional financial products such as credit, bonds, and private equity onto blockchain networks in the form of tokens.
As the tokenization of real-world assets continues to gain traction, it has the potential to revolutionize legacy financial systems by increasing efficiency, transparency, and accessibility across various sectors of the financial industry.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
