Issuance of Catastrophe Bonds on Blockchain Is Scheduled for 2027

Published: September 3, 2026 – 12:40 UTC

The first catastrophic onchain ownership bonds are planned for issuance in 2027.
Tokenization could make insurance assets more accessible to a broader range of investors.
The minimum investment is expected to be reduced from $250,000 to $5,000.

Law firm Harneys and tokenization platform droppRWA plan to carry out the first issuance of catastrophe bonds (cat bonds) in early 2027, with ownership rights recorded directly on the blockchain, CoinDesk reports. The project is being developed in Bermuda amid the rapid growth of tokenization of traditional assets.

Cat Bonds Will Get Onchain Ownership Rights

Catastrophe bonds are used by insurers, reinsurers, and government entities to transfer part of the risk from large-scale natural disasters to investors. They generate returns in the form of coupon payments, but may also provide for payouts to insurers if a specified catastrophic event occurs.

Unlike many other tokenized assets, where the token merely represents an asset that is legally held in a separate offchain structure, Harneys and droppRWA want to link the token directly to ownership rights.

“The token would not simply point to a bond held somewhere else. Under the structure the firms have developed in Bermuda, the investor would hold legal title to the bond,” said Henry Mander, Harneys partner.

droppRWA CEO Faisal Monay noted that the register of owners, investor verification, and the payout process will also operate within a legally enforceable system. According to him, this could potentially cut reconciliation from several days to a few seconds.

At the same time, the project requires the relevant regulatory approvals, and the platform administrator must obtain a license under the Bermuda Digital Asset Business Act 2018.

Another potential effect would be a lower minimum investment. While traditional cat bonds often have a face value starting at $250,000, investors could be offered beneficial interests in a structure that will own the bond. In that case, the minimum contribution could potentially fall to $5,000.

Edwin Mata, Brickken CEO and co-founder, emphasized that the main challenge will not be tokenization itself, but its legal and financial implementation:

“The issue isn’t whether you can put a catastrophe bond on a blockchain. It’s whether the blockchain becomes the legal ownership record. If it does, transferring the token transfers legal title.”

According to data from RWA.xyz, at the time of writing, the tokenized assets market has surpassed $38 billion. Citibank projects that by 2030, the tokenized securities market could grow to $5.5 trillion.

At the same time, the cat bonds market itself is estimated at $65.6 billion. Q2 2026 was a record quarter for it: during this period, $11.3 billion in bonds were issued across 48 deals.

The idea of tokenization is gradually moving beyond the digital representation of traditional assets. Consensys CEO and founder Joseph Lubin said that the global economy is moving toward full tokenization, and that Ethereum has structural advantages for developing this area.

Meanwhile, New York Life Investment Management called the next stage of tokenization the creation of personalized investment portfolios for millions of clients.

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Source: Incrypted