Allianz, a German insurance group, and Deutsche Bank have associated with Berlin-based car exchange Auto1 to offer car financing utilizing blockchain innovation, Cointelegraph auf Deutsch announced today, June 7. The three associates have made another organization called “Auto1 Fintech” of which they together own more than 50 percent.
The new project will offer protection items and loan refinancing for car dealerships that purchase Auto1’s vehicles, said co-CEO Hakan Koc in a meeting with Bloomberg. Auto1, which is sponsored by SoftBank Group Corp., is an online trade for second-hand cars that buys them from people and after that exchanges them to dealerships.
The advance installment and refinancing confirmation will be recorded on a blockchain. The new procedure will apparently enable dealerships to instantly refinance their buys, as opposed to utilizing a paper-based process which can tie up their value for more than two weeks. Auto1 hopes that the new blockchain platform will enable the organization to expand its offerings and promote client loyalty. As indicated by Koc:
“We are freeing capital and our customers are more liquid as a result. It’s a win-win.”
Auto1 is trying to become the predominant web platform for second-hand cars. While they are now dynamic in Germany, the organization will expand into France and Poland by the end of the year, as indicated by Koc. Prior to this year, SoftBank’s Vision Fund invested €460 million ($540 million) in Auto1, valuing the organization at about €2.9 billion ($3.4 bln).
Other car companies around the globe are trying blockchain innovation applications going from basic financial transactions to autonomous driving support. In a pilot project, Daimler AG, the auto giant behind Mercedes-Benz, launched a blockchain based program to reward eco-friendly driving. Drivers, who drive in an environmentally friendly way like smooth and safe driving at low speeds, will get MobiCoins, which they would then be able to trade for VIP tickets to occasions and different prizes.
In March, Ford Motors, the big car company documented a patent for a vehicle-to-vehicle communication technique that includes the trading of crypto tokens to oversee traffic flow. One case of a potential interaction would be if a driver was running late for a meeting, they could demand to pass different vehicles for the following 10 minutes in return for a specific number of tokens.