The law firm Harneys and the platform droppRWA have announced plans to issue catastrophe bonds, with ownership rights secured on the blockchain. This was revealed by representatives of the companies in an interview with CoinDesk.

Catastrophe bonds are utilized by insurance companies and government entities to transfer some of the risks associated with natural disasters to investors. Investors hold these bonds until a specified event occurs, such as a hurricane or earthquake. The market for these so-called cat bonds is valued at approximately $65.6 billion.

The partners plan to conduct their first transaction involving such assets at the beginning of 2027.

Edwin Mata, CEO and co-founder of Brickken, emphasized that a crucial question is whether blockchain will serve as a legal record of ownership rather than merely a digital representation of the asset. He pointed out that tokenization does not affect the assessment of catastrophe risk, trigger mechanics, collateral quality, or the bond's valuation.

Faisal Monai, co-founder of droppRWA, mentioned that a system could be created to consolidate the investor registry, eligibility checks, and payouts into one legally enforceable framework. With the necessary regulatory approvals, data verification could potentially be reduced from days to seconds.

Additionally, the parties are discussing ways to lower the entry threshold. Rather than requiring a direct purchase of notes with a typical minimum denomination of $250,000, investors may be offered a beneficial interest in a structure that distributes income among several holders. In this case, the minimum investment could decrease to as low as $5,000.

According to CoinDesk, the issuance of catastrophe bonds reached $11.3 billion across 48 transactions in the second quarter of 2026. The Bermuda Stock Exchange accounted for 93% of global issuance in 2025, hosting cat bonds and insurance securities totaling $70.5 billion.

As reported by RWA.xyz, the market for tokenized assets has nearly tripled in the past year, surpassing $38.5 billion.

Source: RWA.xyz.

It is important to note that in August, the IMF reiterated concerns regarding the risks associated with tokenization. According to the regulator, the technology has the potential to reshape the architecture of the global financial system, but without common standards, it could exacerbate market fragmentation and systemic risks.