Law firm Harneys and digital asset platform droppRWA are considering a tokenized catastrophe bond structure aimed at reducing the investment threshold for this corner of the market, according to Techub, citing CoinDesk. In the traditional catastrophe bond market, minimum investment sizes are often $250,000 or more. The proposed structure could allow smaller beneficial interests while still remaining subject to securities, insurance, and investor protection rules. Henry Tucker, CEO of insurance group Hearns, said the tokenized format is not about turning disaster coverage into a casual retail product. He said the capital would be used entirely to cover specific insurance risks. Tucker also pointed to flood and typhoon protection risks in Southeast Asia, which can be difficult to place through the traditional reinsurance market because claims data may be limited or loss estimates uncertain. In his view, a tokenized structure could let specialist underwriters raise capital for a single risk and explain the assumptions and return profile to investors more clearly.
Harneys, a law firm, and digital asset platform droppRWA are considering a tokenized catastrophe bond structure designed to lower the entry threshold for investors, according to Techub, citing CoinDesk.
The idea is based on the traditional catastrophe bond market, where minimum investment sizes are often $250,000 or higher. Under the proposed structure, smaller beneficial interests could be accommodated, though the product would still need to comply with securities, insurance, and investor protection rules.
Henry Tucker, CEO of insurance group Hearns, said the tokenized structure would not turn disaster coverage into a casual retail investment. He said the capital would be dedicated entirely to covering specific insurance risks.
Tucker added that risks such as flood and typhoon protection in Southeast Asia are often difficult to arrange through the traditional reinsurance market because claims data can be limited or loss estimates uncertain. A tokenized structure, he said, could allow specialist underwriters to raise capital for a single risk and spell out the assumptions and return profile for investors.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
