British insurance company Legal & General is cooperating with online retail giant Amazon to develop the first corporate pension blockchain system in the world, Reuters reported yesterday.
Legal & General will reportedly use Amazon Managed Blockchain to pay the corporate pensions that are transferred to the firm.
Thomas Olunloyo, Legal & General Reinsurance CEO, has said:
"The nature of blockchain is perfect for the pensions business, since it allows data and transactions to be signed, recorded and maintained permanently and securely throughout the useful life of these contracts, which can extend over more than 50 years."
The Financial Times reported in an article that companies transfer pensions to this type of insurers simply to avoid the personal payment of their employees' pensions.
Legal & General said it plans to launch this new blockchain platform in all the markets it operates with the only exception of its two biggest markets, the U.S. and Britain. However, the firm intends to extend the use of the platform to these two markets in the future.
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