Core Blockchain development company ARAX and bond issuer Longevity Capital Company (LCC) are teaming up to create a blockchain-based solution for life insurance settlement investment sector.
Aiming to redefine the life settlement bond market, ARAX and LCC have unveiled a partnership that has led to the creation of a tokenized fractional life settlement bond platform, aiming to increase transparency and democratize access to what has traditionally been an investment opportunity for large institutional investors. .
Life settlements are financial arrangements where the owner of a life insurance policy sells it to a specialist buyer (often a company or investor) for a lump sum. This gives the seller immediate access to cash, while the buyer assumes responsibility for future premiums and receives the death benefit when the insured dies.
The two companies will form VERAT, an equally owned platform designed to revolutionize the life insurance industry. The aim is to provide solutions for banks, insurance companies, investment fund managers and private individuals looking for investment opportunities in life settlement bonds. It will use Core blockchain to convert life settlement bonds into smaller, tradable tokens, making them more accessible to investors. The platform uses advanced analytics to provide up-to-date valuations of life insurance assets, leading to better investment decisions.
VERAT will reportedly offer a fully transparent and compliant platform, integrating features such as digital identity verification (CorePass) and regulatory technology (Core RegTech) to ensure users adhere to the rules and regulations.
CorePass will streamline digital identity verification, simplifying compliance with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations. Additionally, the Ping Exchange will efficiently trade tokenized bonds, while Core Digital Asset Management & Digital Attribute Platforms will enhance asset tracking and analysis.
According to a statement shared with CryptoSlatethe VERAT platform promises democratized access to life settlement bond investments. By using tokenization, the platform lowers investment barriers, allowing individual and smaller investors to participate in an asset class that was previously out of reach. This shift increases market liquidity and promotes a more inclusive investment landscape.
The VERAT initiative offers significant benefits to the life insurance industry. Tokenization lowers investment barriers and improves liquidity by making it possible to buy fractions of bonds. Real-time valuations enable data-driven decision-making, while streamlined compliance procedures and lower overhead costs further increase its attractiveness to investors.
As ARAX and LCC continue to develop the platform, they are poised to disrupt the life insurance investment landscape. By harnessing the potential of blockchain technology, VERAT aims to create a more transparent, accessible and efficient financial ecosystem for all types of investors.
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