Global law firm Harneys and Bahamas-based tokenization platform droppRWA are building a structure to directly record the legal ownership of catastrophe bonds on the blockchain, with the goal of the first issuance in early 2027, CoinDesk reported. Catastrophe bonds are products issued by insurers, reinsurers, and government agencies to transfer a portion of the risk of large-scale natural disasters such as hurricanes or earthquakes to capital market investors. The current market size is approximately $65.6 billion. This is expected to shorten the transaction and ownership verification process, which previously could take several days, to a matter of seconds. Additionally, a plan is being considered to lower the minimum investment amount for catastrophe bonds, which is typically over $250,000, to around $5,000 by utilizing a separate investment vehicle.
