Aon says it is the first business to let clients to pay insurance premiums using US dollar-backed stablecoin.

Stablecoin is a crypto-asset designed to maintain a stable value relative to a store of value such the US dollar, or a commodity such as gold.  

It aims to overcome the shortcomings – particularly price volatility – of “unbacked” crypto-assets such as bitcoin.

Aon worked with clients Coinbase and Paxos to arrange what it says is the first known stablecoin premium payment by a major global broker.

The transactions were executed across blockchain networks including USDC on Ethereum and PayPal USD on Solana.

Aon says stablecoin technology can support more efficient movement of funds, and passage of the GENIUS Act in the US last year established a federal framework for stablecoin that supported the transaction.

The broker is now evaluating how regulated stablecoin settlement could integrate into insurance services, and says the long-term potential is significant. It expects efficiency and cost-saving opportunities as the technology matures.

“This evolution could enable faster settlement timelines, greater payment efficiency and closer alignment between risk transfer and the movement of capital,” Aon said.  

“Aon and Paxos are demonstrating that stablecoins are not a future concept but a practical tool financial institutions can use today to modernise settlement and strengthen risk management.”