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.
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.