Blockchain development firm ARAX and bond issuer Longevity Capital Company (LCC) have formed a partnership to bring a blockchain-based innovation to the life insurance settlement investment industry.
With the goal of transforming the life settlement bond market, ARAX and LCC have initiated a project that culminates in a tokenized fractional life settlement bond platform. This platform is designed to increase transparency and open up investment opportunities to a broader audience, moving beyond the traditional domain of large institutional investors.
Life settlements involve the sale of a life insurance policy by the policyholder to an investor or company in exchange for a cash payment. The buyer then takes on the premium payments and receives the policy’s death benefit upon the insured’s death.
The collaboration has led to the creation of VERAT, a joint venture aiming to innovate in the life settlement sector. VERAT will serve as a marketplace for banks, insurers, fund managers, and individual investors interested in life settlement bonds. It leverages Core blockchain technology to tokenize these bonds, making them more accessible and divisible among investors. The platform features advanced analytics for real-time asset valuation, enhancing investment decision-making.
VERAT promises a transparent and regulation-compliant platform, incorporating digital identity verification (CorePass) and regulatory technology solutions (Core RegTech) to ensure adherence to legal standards.
The integration of CorePass will facilitate efficient digital identity checks, easing the compliance burden related to KYC and AML standards. Additionally, the platform will include mechanisms for trading tokenized bonds (Ping Exchange) and tools for asset management and analysis (Core Digital Asset Management & Digital Attribute Platforms).
A statement to CryptoSlate highlighted VERAT’s commitment to democratizing access to life settlement bond investments by lowering the entry barrier through tokenization. This approach enables smaller investors to engage in an asset class previously limited to well-capitalized entities, thereby enhancing market liquidity and promoting inclusivity.
The VERAT initiative stands to benefit the life settlement industry by reducing entry barriers, improving liquidity through fractional bond purchases, enabling informed investment through real-time data, and simplifying regulatory compliance. This makes the investment process more appealing and accessible.
As ARAX and LCC progress with VERAT, their efforts are set to redefine the investment landscape in life settlements. By leveraging blockchain, they aim to create a financial ecosystem that is more transparent, accessible, and efficient for investors of all sizes.
