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SunCar Technology Group Inc. (SDA) announced that its board of directors authorized the company to invest up to $10 million in select cryptocurrencies focused on real-world asset tokenization.
The auto insurance technology company said the investment is part of a capital allocation strategy aimed at developing a blockchain and tokenized real-world asset platform. SunCar operates cloud-based platforms connecting drivers with auto services and insurance in China’s passenger vehicle market.
"Our investment in the leading RWA-focused cryptocurrencies is part of our new capital allocation strategy, which seeks to leverage our strategic plan to develop a blockchain and tokenized RWA platform and to maximize long-term value for our shareholders," said CEO Zaichang Ye.
The company stated it believes blockchain integration represents a natural evolution of its artificial intelligence-powered cloud technology for digital auto insurance services. SunCar said it is researching how to integrate blockchain and real-world asset tokenization into its existing business model.
SunCar indicated the cryptocurrency investments will focus on established digital assets with significant market capitalization and liquidity, and will be made in compliance with applicable regulatory requirements. The company said it expects to provide updates on its cryptocurrency holdings through regular press releases and SEC filings.
The announcement referenced a report by Ripple and Boston Consulting Group projecting the real-world asset market could reach $19 trillion by 2033, up from approximately $25 billion in mid-2025.
Founded in 2007, SunCar develops cloud-based platforms for auto insurance and services in China through a network of sales partners.