droppRWA

Harneys

2026-10-12 15:09:55

Harneys and droppRWA weigh tokenized catastrophe bond structure to lower entry size

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.

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catastrophe b

2026-09-03 08:37:36

Harneys and droppRWA to Issue First Catastrophe Bond with On-Chain Ownership Recording

Law firm Harneys and tokenization platform droppRWA have announced plans to issue the first catastrophe bond that directly records ownership on a blockchain, targeting an initial transaction in early 2027. The structure would make the blockchain a legally enforceable record of ownership, integrating investor registration, eligibility checks, and payment flows into a single system, reducing reconciliation time from days to seconds, subject to regulatory approval. The catastrophe bond market, valued at $65.6 billion, allows insurers, reinsurers, and governments to transfer natural disaster exposure to capital markets. The tokenized asset market has grown nearly threefold in the past year to over $33 billion, with Citigroup projecting it could reach $5.5 trillion by 2030. The second quarter of 2026 was the largest on record for catastrophe bond issuance, with 48 transactions totaling $11.3 billion. The Bermuda Stock Exchange hosted 93% of global catastrophe bond issuance in 2025. To lower the investment threshold, investors can purchase beneficial interests in a vehicle that holds the bonds and passes through returns, potentially reducing the minimum investment to $5,000, compared to the typical $250,000 minimum for direct catastrophe bond notes. The project still requires regulatory approvals, and any platform administrator role must be licensed under Bermuda's Digital Asset Business Act 2018.

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