Update
Harneys and dropRWA Plan Tokenized Catastrophe Bonds
Harneys, a Bermuda-based law firm specializing in global insurance, and tokenization platform dropRWA plan to issue tokenized catastrophe bonds early next year. The tokenized structure aims to make disaster coverage more accessible to smaller investors, who would hold legal ownership of the catastrophe bond represented by each token. The proposal builds on a conventional market that has historically been available largely to specialist funds and large institutions, with minimum investments of $250,000 or more. The tokenized structure does not turn disaster coverage into a casual retail investment, as the capital is fully committed to cover a defined insurance risk. The firms argue that tokenization will not make a hurricane, flood, or wildfire less expensive, nor will it guarantee cheaper insurance for people in exposed areas. Instead, it could bring more investors into a market built to absorb extreme losses.