HelloGold to supply US$2mil in gold to insurtech firm Heluss
By Digital News Asia August 28, 2018
- The gold will be used by Heluss to increase stability of its HUT tokens
- Partnership reflects HelloGold’s commitment to develop more products
SOUTHEAST Asian fintech investment platform HelloGold has entered into an agreement to become the supplier and custodian of gold for insurtech firm Heluss.
The companies will start with an initial purchase of US$2 million (RM8.18 million) worth of gold. The gold will be used by Heluss to increase stability of its HUT tokens.
In the long-term, HelloGold will explore using Heluss’ technology to provide tailor made insurance products for the underserved and unbanked.
HelloGold CEO and co-founder Robin Lee (pic), said, “Gold is a traditional store of investment and savings, notably in Asia, which represents 70% of the gold market. Gold is a powerful means of wealth preservation and financial inclusion, and being able to buy, hold and sell gold in a convenient, safe, physical format brings tremendous value to people.”
“Our partnership with Heluss reflects our commitment to develop more products, enabling financial inclusion and wealth creation for underserved and unbanked communities,” he added.
Heluss CEO and founder Jean Pierre Rukebesha commented, “Heluss is dedicated to disrupting the insurance industry by tokenising and gamifying travel, home, auto and loan insurance by leveraging new technologies.
“This lowers cost, reduces chances of fraud and increases transparency for policyholders. Partnering with HelloGold will help us focus on our core business while ensuring transparency and third-party custodianship for our hard assets which supports our overall company stability.”
Heluss, based in Canada, provides innovative solutions to the insurance industry, transforming how traditional policies work with the use of blockchain technologies, smart contract and AI in claims management.
Its business model is defined by a 40-40-20 rule. Forty percent of premiums are allocated for claims and the reinsurance fund. Any savings are returned to token holders as bonuses, rewards, incentives and other means to increase community engagement.
Another 40 percent is tokenised for policyholders in HUT tokens. These funds are kept in a “H-Vault” reserve in the form of physical assets. The remaining 20% is allocated for Heluss’ ecosystem operations.
Asset-backed cryptocurrencies or stablecoins are digital currencies backed by real world assets such as gold, USD, oil and property.
These assets lend stability and credibility to a company’s business model and reduces the volatility of cryptocurrencies over time.