Algorand, a layer-1 blockchain platform, is collaborating with the Research Center on Technologies, Innovation, and Finance from the Catholic University of Milan to create an innovative digital guarantees platform.

This platform is the first of its kind to be used in the banking and insurance sectors within an EU member state and is expected to launch in early 2023.

Through its fast, efficient, low-cost and scalable data transactions, as well as its anti-fraud capabilities, blockchain technology is well-suited to provide the “digital sureties” platform with the security needed for bank and insurance guarantees.

A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan, and an insurance guarantee is similar but is offered by an insurance company.