Harneys, droppRWA target early 2027 for blockchain catastrophe-bond issuance

  • Harneys and droppRWA are building a structure for blockchain-based catastrophe-bond ownership records.
  • About $65.6 billion is the current catastrophe-bond market size.
  • Harneys and droppRWA are considering minimum investments of around $5,000 through a separate vehicle.

Global law firm Harneys and Bahamas-based tokenization platform droppRWA are developing a structure to record legal ownership of catastrophe bonds directly on blockchain (a shared digital ledger), with the first issuance targeted for early 2027, CoinDesk reported. Catastrophe bonds transfer part of the risk from major natural disasters, including hurricanes and earthquakes, from insurers, reinsurers and government agencies to capital-market investors. The market is currently worth about $65.6 billion. The proposed structure is designed to reduce trading and ownership-verification timelines from several days to seconds. Harneys and droppRWA are also considering a separate investment vehicle that could reduce the typical minimum investment from more than $250,000 to around $5,000.

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