Blockchain insurance startup MediConCen has raised $6.85 million in funding led by HSBC to improve the sector by "simplifying and speeding up the claims journey," according to a blog announcement by the Hong Kong-based startup. Other investors, including G&M Capital, ParticleX, and new investor Wings Capital Ventures, have also participated in the funding.

With the latest cash inflow, MediConCen has raised a total of $12.7 million and plans to use the proceeds to accelerate its growth in the international market, including the Middle East and Southeast Asia. MediConCen's head, William Yeung, stated that the startup is transforming the paper-based and human-based claim process into a "digital- and AI-assisted journey, utilizing the latest AI and blockchain technology."

Kara Byun, head of fintech at HSBC Asset Management, mentioned that the funding is expected to simplify and speed up the claims process, ensuring fairness in claim amounts, with a technology backbone that supports scaling up these benefits.

MediConCen, established in 2018 as an incubatee at Cyberport, a Hong Kong government-backed high-tech industrial park, serves over 16 insurers and more than 1 million insured individuals. The company's cashless claim platform has over 1,200 medical providers participating.

For HSBC, this investment underscores its commitment to digitization in Hong Kong. HSBC Hong Kong's CEO, Luanne Lim, previously outlined the bank's plans to explore tokenization of financial instruments and central bank digital currency pilots in the region, aiming to bring efficiency, transparency, and cost reduction to traditional finance.

HSBC has been actively engaged in financial experimentation in Hong Kong, allowing clients to trade Bitcoin (BTC) and Ethereum (ETH) futures through its investment platform in June 2023. Additionally, in November 2023, HSBC partnered with a Ripple-owned firm for a blockchain initiative targeting institutional clients interested in real-world assets hosted on-chain.