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Catastrophe bonds could move onto blockchain for legal ownership
The proposed model would aim to cut reconciliation time from days to seconds and lower the typical minimum ticket from at least $250,000 to $5,000.
Catastrophe bonds, a form of insurance-linked debt that pays out after major disasters, may be among the next tokenized products to be issued onchain, according to plans outlined by a law firm and a tokenization platform. CoinDesk reports Harneys and droppRWA are developing a structure they say would record investors' legal ownership of cat bonds directly on a blockchain.
Under the proposal, the blockchain would serve as the legally enforceable ownership record, rather than a token that merely references a bond held offchain. CoinDesk says this approach would also place investor register, eligibility checks, and payment processing on the same system, potentially reducing reconciliation from days to seconds if regulators approve.
CoinDesk reports the firms also target a much lower entry point than the current market, with their plan suggesting minimum investment levels could drop from at least $250,000 to $5,000. The outlet says droppRWA and Harneys have positioned the first deal for early 2027.
Harneys advises on alternative risk-transfer products including cat bonds, while droppRWA is described as a Bahamas-based platform helping Saudi Arabia tokenize its economy. CoinDesk reports the project is intended to bring catastrophe bonds into the tokenization wave using legal title recorded onchain.