Insurance Giant AXA XL Launches Security Token and Crowdfunding Insurance Service
Insurance giant AXA XL and insurance technology startup Assuredly have jointly launched a new insurance product covering equity crowdfunding and Security Token Offerings (STOs), according to a press release published on March 6.
The new product dubbed CrowdProtector is designed for issuers and investors, and purportedly protects new online capital formation strategies like equity crowdfunding and STOs. The product also aims to increase trust, confidence, and safety to potential investors guaranteeing that the issuer is insured. According to Ty Sagalow, CEO of Assuredly, the parties have managed to increase underwriting. The releases states:
“CrowdProtector provides Issuers protection against investor complaints and lawsuits as well as serve as communication to investors that they may get their principal investment returned should the issuer misuse the funds, purposefully misrepresent information in their offering documents, or steal the money.”