Houston co. completes stem cell-for-cryptocurrency exchange

A Houston-based company successfully completed Feb. 5 a cryptocurrency transaction for a health care service in Sugar Land as the payment method is being used globally to purchase anything from food to private jet services.

Houston-based CareX Blockchain Platform, a subsidiary Scottline Healthcare Solutions, facilitated the exchange for a patient needing stem cell therapy at Sugar Land-based clinic Elite Doc Health and Beauty. The company is developing a technology that uses blockchain to make health care transactions.

CareX also recently received a $10 million commitment from an undisclosed investment group as it aims to raise $20 million through an initial coin offering.

"Several doctors have signed up (in Houston)," CEO Mike Bishop said. "But the ICO (initial coin offering) is still the vehicle to build out our network."

Pinto Walia, 53, was the patient involved in the transaction. Walia has double-hit lymphoma, an aggressive and rare form of cancer, and often pays for his treatments through cash without insurance. Walia volunteered to be the first person to use CareX's technology to pay for his service as he's a consultant with CareX.

Paying for the treatment lasted a few seconds. Using an app, Walia moved his Care tokens from his digital wallet to the clinic. The exchange rate is about one Care token for $10.

The service is normally about $7,000, but Dr. Naz Keshwani said he's offering it for 450 Care tokens. He hopes the discount will increase business for his clinic, which also offers other services such as facials, skin tightening and hormone treatments.

Keshwani agreed to use CareX for the exchange after he was approached by Walia. He said he's treating cryptocurrency like any other form of payment, but he usually accepts cash for his various procedures.

Another reason he was open to doing it was the transaction didn't involve insurance companies, which might complicate the process.

"It's exciting," Keshwani said. "I feel like I'm on the forefront.

"CareX started last summer and has about nine employees. The company plans to reduce the costs of health care transactional paperwork by employing blockchain, which records cryptocurrency transactions publicly.

The company offices out of Scottline's headquarters in Bellaire at 6575 West Loop. The subsidiary is looking to grow across the U.S. and the world its network of providers, such as family doctors, that accept Care tokens in return for services. Parent company Scottline has about 70 employees and was founded in 2013.

CareX's name was created as a shortened form of "care exchange for tokens."