Core Blockchain development company ARAX and bond issuer Longevity Capital Company (LCC) have partnered to introduce a blockchain-based solution for the life insurance settlement investment sector.
Aiming to redefine the life settlement bond market, ARAX and LCC have unveiled a collaboration that has led to the creation of a tokenized fractional life settlement bond platform, aiming to enhance transparency and democratize access to what has traditionally been an investment avenue for large institutional investors.
Life settlements are financial arrangements where the owner of a life insurance policy sells it to a specialized buyer (often a company or investor) for a lump sum payment. This provides the seller with immediate cash, while the buyer assumes responsibility for future premiums and receives the death benefit when the insured person passes away.
The two companies will form VERAT, an equally owned platform designed to revolutionize the life settlement industry. It aims to provide solutions for banks, insurance companies, investment fund managers, and individuals seeking investment opportunities in life settlement bonds. It will use Core blockchain to turn life settlement bonds into smaller, tradeable tokens, making them more accessible to investors. The platform uses advanced analytics to provide up-to-the-minute valuations of life settlement assets, leading to better investment decisions.
VERAT will reportedly offer a fully transparent and compliant platform, integrating features like digital identity verification (CorePass) and regulatory technology (Core RegTech) to guarantee that users abide by rules and regulations.
CorePass will streamline digital identity verification, simplifying compliance with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations. Moreover, the Ping Exchange will efficiently trade tokenized bonds, while Core Digital Asset Management & Digital Attribute Platforms will enhance asset tracking and analytics.
According to a statement shared with CryptoSlate, the VERAT platform is its promise of democratized access to life settlement bond investments. By utilizing tokenization, the platform lowers investment thresholds, allowing individual and smaller-scale investors to participate in an asset class that was previously out of reach. This shift increases market liquidity and fosters a more inclusive investment landscape.
The VERAT initiative presents significant advantages for the life settlement industry. Tokenization lowers investment barriers and enhances liquidity by making it possible to purchase fractions of bonds. Real-time valuations empower data-driven decision-making, while streamlined compliance procedures and reduced overhead costs add further appeal for investors.
As ARAX and LCC continue to develop the platform, they stand poised to disrupt the life settlement investment landscape. By harnessing the potential of blockchain technology, VERAT seeks to establish a more transparent, accessible, and efficient financial ecosystem for all types of investors.
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