ARC makes first venture capital investment in travel blockchain developer

Airlines Reporting Corporation, ARC, has made its first significant round of venture capital financing in Blockskye, a company developing blockchain-based solutions for the travel industry.

Terms of the Series A investment have not been disclosed.

In January, ARC announced it had completed a successful proof of concept with Blockskye regarding the viability of using blockchain technology with the ARC system to facilitate the reporting and settlement of United Airlines tickets for a corporate client.

In that test, ARC’s secure system tracked ticket lifecycles from issuance through settlement and identified all transaction modifications through smart contracts.

“Our recent collaboration with Blockskye, a major U.S. airline, and one of their largest corporate accounts makes us optimistic that there are near-term use cases for blockchain that drive strategic benefits and pull these already close relationships even closer,” says Mike Premo, ARC president and CEO.

“We’re delighted to make ARC’s first ever outside investment in Blockskye to support the development of this forward-thinking company and assure customers that the benefits of the industry ecosystem that ARC provides will be easily accessible even as new platforms like blockchain are deployed.”

The two companies have not shared the name of the corporate partner, but at the Blockchain in Travel Summit hosted by JetBlue Technology Ventures in March, Blockskye CEO Brook Armstrong said they expect to share that information and details of how the platform has saved the client time and money soon.

“Valuable corporate customers are increasingly demanding new ways to book and account for travel,” says Michael Share, Blockskye’s president and co-founder.

“We are focused on doing better for corporate buyers — and our partnership with ARC is a big step forward in that direction. Corporate buyers, travel management companies and airlines all win.”