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The importance of security tokens and crowdfunding insurance services

Insurance giant AXA XL and Assurely’s startup for insurance technology have jointly launched a new insurance product for Kaptial Crowdfunding and Security Token Offerings (STOs), according to a press release issued on 6th March.

The new product called CrowdProtector was developed for issuers and investors and is said to protect new online capital formation strategies such as equity crowdfunding and STOs. The product also aims to increase the confidence and confidence of potential investors to ensure that the issuer is insured. According to Ty Sagalow, CEO of Assurely, the parties have succeeded in increasing risk-taking. The messages say:

“CrowdProtector offers the issuers protection against investor actions and serves as a mediator to investors that they may recover their principal investment if the issuer misuses the funds, intentionally misrepresents information in its offer documents or steals the money”.

The press release noted that until recently, investments in private companies were available to accredited investors – with a net worth in excess of one million euros or earned income in excess of € 175,000 – marginalizing a large number of potential investors ,

AXA XL is reportedly the second largest insurer in Europe, providing risk management and reinsurance services to insurance companies worldwide. The company’s net income in 2018 was 2.14 billion euros, down 66 percent from the previous year. At the same time, the company’s profits increased by three percent in 2018 and the dividend increased by six percent to € 1.34 per share.

As early as 2015, AXA XL announced that it would use Bitcoin (BTC) for bank transfers to streamline payments worldwide. At the time, the company stated that many Bitcoin use cases had not yet been investigated.

As reported by Cointelegraph in February, BitGo, a security company for blockchain security services and crypto-wallets, announced plans to offer crypto insurance through Lloyd’s of London. BitGo Business Wallet customers are reportedly able to purchase insurance for their digital assets in BitGo’s Business Wallet service and Custodial offering.


Also published on Medium.

Published inTechnology

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