The state of Vermont in the US has taken its step towards exploring the potentials of blockchain technology in maintaining insurance records. Jim Condos, the state secretary, and Michael Pieciak, financial regulation commissioner, have signed a Memorandum of Understanding (MoU) to launch a blockchain pilot project in the state.

The pilot project is aimed at enabling the state government regulatory bodies to identify various aspects of blockchain usage in the captive insurance industry. The move is expected to reduce intermediary costs and provide enhanced security of the records as compared to traditional recordkeeping.

The duo has also issued a ‘Request for Information’ to identify prospective partners interested in collaborating with the State’s blockchain project to improve the state regulatory process.