Chinese conglomerate Tencent will partner with local health insurance company Waterdrop to create new blockchain-supported solutions.
According to a Bloomberg report, Waterdrop will be utilizing Tencent’s strong presence and industry experience to develop the still-undetermined blockchain tools.
The announcement came after Waterdrop, one of China’s crowdfunded health insurance provider, closed its Series B funding last month. The round was headed by Tencent, which was able to raise about 500 million yuan, or $74.2 million.
Waterdrop is reportedly also looking into fresh financing and is aiming for a valuation of about $1 billion. Founder and CEO Shen Peng was quoted as saying the company will be using the funding on “automating reimbursements and developing blockchain technology with Tencent.”
China has a robust crowdfunded medical insurance industry. It works on the premise of members contributing to the critical medical needs of other users. Some platforms are designed to accommodate payouts amounting to 300,000 yuan or $44,500 maximum.
Tencent isn’t the only Chinese enterprise investing in the medical insurance industry. Ant Financial, fellow internet giant and Alipay owner are also involved through its Xiang Hu Bao. The company is aiming to convince around 300 million residents to sign up by 2021.
Tencent’s foray into blockchain started several years ago and includes projects in different areas of the economy, like transport and its personalized blockchain transaction platform.
The corporate giant is among the 200 or so companies to receive official approval from China’s government. The approval was given in April as the country begins to formalize blockchain and cryptocurrency space.