California’s Department of Motor Vehicles has digitized 42 million car titles using blockchain technology to reduce fraud and minimize the need for in-person visits.

The project, conducted in collaboration with tech company Oxhead Alpha on Ava Labs’ Avalanche (AVAX) blockchain, is the first of its kind in the United States. The initiative aims to enhance fraud detection and streamline the title transfer process.

Now, over 39 million California residents can claim and manage their vehicle titles through a forthcoming mobile app set to launch early next year.

By converting physical assets such as car titles into digital tokens on a blockchain, ownership becomes more transparent and efficient. This shift simplifies transactions, lowers the risk of fraud, and enables fractional ownership, making high-value assets more accessible.

The digitization of car titles is expected to reduce in-person DMV visits. Blockchain technology will provide a transparent and unalterable record of property ownership, serving as a robust deterrent against lien fraud.

Innovations such as California’s blockchain-based car titles and emerging real estate platforms signify a shift in the industry. Tokenization is expanding, offering the potential to transform asset management and democratize access to traditionally illiquid markets.

Reuters was the first to report this news.

Government services are starting to adopt blockchain technology

The effort to modernize the title management process reflects a significant step towards integrating blockchain into public services.

This initiative also underscores a growing acceptance of blockchain technology in governmental operations, signaling potential increased investment in blockchain solutions.

As digitization efforts continue, blockchain could revolutionize the maintenance and accessibility of public records, enhancing both efficiency and security across various sectors.