Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Reliance Global Group Inc. (RELI) announced its board of directors approved a strategic expansion into digital assets and blockchain technology. The company plans to purchase up to $120 million in cryptocurrencies including Bitcoin, Ethereum, and Solana.
The investment will occur in two phases, with up to $60 million in the first phase followed by an additional $60 million, subject to market and other conditions. The company formed a Crypto Advisory Board to manage and oversee the digital asset treasury strategy.
Reliance said it will explore opportunities to tokenize insurance-linked assets, which the company claims could create a new investment class for institutional and other investors. The initiative builds on the company’s existing insurance and fintech operations, including its RELI Exchange platform and 5MinuteInsure.com.
"Our planned entry into cryptocurrency and blockchain-based insurance-linked assets marks another important step in this journey," said Ezra Beyman, chairman and CEO of Reliance Global Group. "Through our efforts to build a portfolio of premier digital assets and by exploring tokenization opportunities, we believe Reliance can create a new and dynamic investment class."
The company stated it seeks to combine its artificial intelligence and data mining capabilities with blockchain technology to develop insurance-linked investment products. Reliance operates in the insurance technology sector through its B2B platform that connects insurance agencies with technology tools.
The announcement included forward-looking statements that noted risks including cryptocurrency market volatility, regulatory changes, and technological challenges related to digital asset custody and cybersecurity.