Two cryptocurrency non-profits, the Fusion Foundation and the Automotive eXchange Platform (AXP), have partnered to bring the U.S. used car market and its insurance and financing to a blockchain. According to the companies’ February 25 joint statement, the first step of the partnership will be to integrate Fusion’s blockchain platform and digitize AXP’s current database of 10.5 million automobiles. This will enable them to properly track and audit each of the cars listed on the blockchain.
Max Kane, the CEO and co-founder of AXP, said that the automotive industry has been struggling with a lack of transparency and widespread information inaccuracies from titles all the way through financing for quite some time now.
“There’s a million vehicles on the road that have ‘washed’ titles, which means there is fraud there. The insurance industry is hit with billions in fraud because of missing information, drivers providing the wrong information and inaccurate reporting,” he explained.
The AXP network currently encompasses around 25,000 independent car dealers across the United States, including relationships with counterparties in finance and loan origination, Kane said.
John Liu, chief product officer at the Singapore-based Fusion Foundation, said that the pilot could be extended to state-based government agencies and the Department of Motor Vehicles (DMV). The new system is scheduled to go live by the first half of this year, Liu said and is expected to handle $60m–$100m of car financing loans.