Harneys, droppRWA move to tokenize catastrophe bond ownership

Global law firm Harneys and Bahamas-based tokenization platform droppRWA are building a structure to record legal ownership of catastrophe bonds directly on blockchain, with a first issuance targeted for early 2027, CoinDesk reported. Catastrophe bonds are issued by insurers, reinsurers and government agencies to transfer part of the risk from major natural disasters such as hurricanes and earthquakes to capital market investors. The market is currently worth about $65.6 billion. The structure is designed to cut trading and ownership verification times from what can take several days to a matter of seconds. The firms are also considering using a separate investment vehicle to lower the typical minimum investment in catastrophe bonds from more than $250,000 to around $5,000.