By CCN: USAA and State Farm have reportedly closed a deal that will see them using the blockchain to pay each other.
So when two people get in an accident, and they’re represented by either of the companies, the company that has to pay will eventually be using a blockchain solution to settle the inter-company payment.
Billions Per Year Settled On Blockchain
The claims amount to billions of dollars a year, which is a lucrative volume that blockchains can settle in minutes. The advent of stablecoins and clearer regulations have renewed interest from traditional institutions.
State Farm made its blockchain project public last year, but USAA wasn’t part of the announcement. Now the partnership is general information.
Instead of issuing billions of dollars to each other via checks, the new blockchain system will make regular settlements between them. The new efficient system will save time and fees for both companies, as well as time. A State Farm representative told Coindesk that many other insurance companies could join the party.
In a few short months, major companies like Whole Foods have announced the integration of cryptocurrency.