Abacus Global Management to Tokenize Secondary Life Insurance Assets, Bringing On-Chain Infrastructure to Its Portfolio
RWA Signal Insight
Private CreditAbacus Global Management has launched an initiative to tokenize secondary life insurance assets, aiming to bring blockchain-native infrastructure to a $224 billion addressable market. The company has already tokenized over 100 in-force policies and plans to migrate its entire balance sheet portfolio on-chain by the end of 2026. By creating an immutable ledger for chain of title, liens, and cash-flow rights, Abacus intends to replace manual, multi-week reconciliation processes with automated, auditable digital records. This transition is designed to reduce operational friction, improve transparency for institutional investors, and expand access for international capital allocators. The move represents a strategic shift for Abacus from an origination-led business model toward a recurring-fee alternative asset management platform. By leveraging blockchain as financial infrastructure rather than a speculative tool, the firm seeks to standardize the operational profile of life insurance assets. This development is significant for the RWA market as it applies tokenization to a massive, historically opaque $14 trillion asset class, potentially setting a new standard for institutional-grade private credit and fixed-income investments.
Key points
- Abacus Global Management aims to tokenize its entire balance sheet portfolio by year-end 2026.
- The initiative targets the $224 billion secondary life insurance market to eliminate manual reconciliation.
- Over 100 in-force policies have already been tokenized to provide immutable chain-of-title records.
- Tokenization is intended to reduce transaction times from weeks to days for institutional investors.
Background
Secondary life insurance involves the purchase of existing life insurance policies from original policyholders by third-party investors. These assets provide predictable, uncorrelated cash flows based on mortality data and policy premiums. Historically, the market has been characterized by high operational complexity and manual documentation, making it difficult for institutional investors to scale their participation.