The insurance giant is trying a new blockchain-based internal token to overcome funds transfer challenges.
A new Allianz token is being tested by the insurance giant for moving money among its global affiliates. The concept used blockchain tech to allow the company’s worldwide locations to exchange money without currency conversions among other challenges.
Allianz is using this token to get past a number of costs and inefficiencies related to international funds transfers.
The Allianz token is meant to be used only within the company itself. It is not launching a cryptocurrency for public use. The Allianz digital token is the result of the insurer’s work with Adjoint, a blockchain startup. That company developed a proprietary blockchain specifically for this project.
The existence of the blockchain tech and the token were confirmed by Allianz reinsurance unit blockchain expert, Oliver Volk. Volk is also a representative at the B3i insurance blockchain consortium. He confirmed that the token is already being used by the company as a part of a test.
The company hopes to use the Allianz token to resolve a number of money movement issues.
“Yes, we are thinking about a kind of Allianz token whereby money coming in will be converted to a token,” confirmed Volk. “But it’s a very big animal and we don’t know what kind of regulatory constraints there are.”
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He explained that the token would assist the insurance company in being able to eliminate foreign exchange constraints as well as “other stuff we have to optimize, especially if you talk to certain currencies which we do not accept at our headquarters and have to be reconverted.”
Volk also pointed out that by being able to use its own proprietary blockchain for this purpose, it would reduce the insurer’s reliance on the banking system. This is appealing as it would produce considerable commissions savings. Moreover, it would make it possible for the company to use it throughout all its affiliate locations worldwide. This is important as the insurance giant currently boasts operations in 100 different countries.
The Allianz token is a special project of the insurer’s business-to-business partner: Allianz Global Corporate & Specialty (ACGS). It developed from a payment disbursing captive insurance blockchain project using the CitiConnect API from Citigroup.