Global Insurance Heavyweight Launching Blockchain Pilot
Aon is joining forces with Nayms and Teller Finance to conduct a distributed ledger technology (DLT) pilot on the public Ethereum blockchain. The first-of-its-kind pilot aims to create robust insurance cover for decentralized finance platforms, according to a press release on March 3, 2021.
AON Tests the DeFi Waters
At a time when only a few bold insurance companies are willing to provide cover for crypto-linked businesses, due to the super volatile nature of the burgeoning digital asset class, Aon (NYSE: AON), a multinational Anglo-Irish insurance giant, is collaborating with Nayms, Relm and Teller Finance to conduct a blockchain pilot.
The firm says the blockchain pilot is a major first step towards creating a platform that would enable bitcoin (BTC) linked businesses to drastically scale their insurance cover in a cost-efficient way, especially as more and more institutional investors continue to join the crypto movement.
Notably, Dan Roberts, the CEO of Nayms has hinted that the pilot’s initial focus will be on providing more cover for projects in the decentralized finance (DeFi) space, and it will gradually expand its scope as time goes on.
Reducing Risks for Crypto Businesses
Established in March 2019, by Dan Roberts and Theodore Georgas, Nayms is an Ethereum-based regulated insurance platform that aims to provide robust insurance solutions for the cryptospace.
At present, the DeFi ecosystem is worth $40 billion, while the latest surge in the price of bitcoin (BTC) and altcoins has pushed the total market cap of the cryptocurrency industry to an impressive $1.52 trillion.
Though this figure may look like chicken feed when compared to the over $90 trillion market cap of the global stock markets, it’s however a significant milestone considering the fact that the cryptospace is just 12-years old.
Commenting on the pilot, Dan Roberts, CEO of Nayms said:
“As the digital asset space soars to $1 trillion, the need for the appropriate insurance protection to scale alongside that growth will be vital for the sustainability of this innovative market. By working with Aon and Relm, we are enabling the collaboration between technology, regulation and the existing insurance marketplace, bringing a robust solution for the cover of digital asset risk to the market.”