Deutsche Bank and Allianz have joined forces with German car exchange Auto1 to offer blockchain-based auto financing services, according to CoinTelegraph.

The collaboration has set up a new company, “Auto1 Fintech”, of which the three partners together own over 50 percent. In an interview with Bloomberg, co-CEO Hakan Koc said that the new company will offer refinancing loans and insurance products to car dealerships buying Auto1’s vehicles.

Founded in 2012, Auto1 is a European online marketplace for the efficient purchase and sale of certified used cars. The startup is backed by Japanese bank Softbank, which reportedly invested €460 million in the company.

The new venture will use blockchain to record loan payment and refinancing confirmations. It will help reduce the dependency on the existing paper-based processes and enable dealerships to immediately refinance their purchases.

Auto1 Fintech is already active in Germany and plans to expand to Poland and France later in 2018.

Major players in the automotive industry are increasingly looking at blockchain technology to enhance the efficiency of their operations. Porsche, in collaboration with Berlin-based start-up XAIN, is testing the application of blockchain technology directly in vehicles. Daimler AG launched a pilot project aimed at rewarding eco-friendly driving.

More recently, automotive giants including BMW, Ford, General Motors, Groupe Renault, and others formed a blockchain consortium – “MOBI”, or the Mobility Open Blockchain Initiative – in a bid to make transportation safer, more affordable, and more widely accessible.