Bermudan asset manager, Members Capital Management, has launched a tokenised insurance linked securities fund.
The MCM Fund I invests in reinsurance contracts focussed on natural catastrophe reinsurance such as hurricanes, earthquakes and floods and cyber reinsurance, which protects insurers against losses from cyber attacks and data breaches.
These contracts were sourced through some of the largest global reinsurance brokers and executed with leading Lloyd’s of London syndicates and major global reinsurers, according to a media statement.
“Tokenisation and digital assets sit at the heart of our offering,” said Jeremy Williams, head of Digital Strategy and Compliance at Members Capital Management.
“Harnessing the energy and potential of on-chain finance, while meeting and exceeding the expectations of our regulators and our partners, is a vital part of our success.”
MCM says its fund is the “first tokenised reinsurance fund aimed at digital asset investors and traditional players”.
The fund gives access to income from reinsurance, an asset class known for high returns and low ties to market swings. Until now, it’s mostly been held by pension schemes and sovereign wealth funds.
“Every generation is presented with new technologies that unlock economic opportunity. To us, tokenisation and the blockchain represent access to better asset management for a different class of investor,” said Lloyd Wahed, co-Founder of Members Capital Management. “We’re excited to be one of the first institutional funds to emerge from this space.”
The fund uses Solana, Aptos, Cardano, and Base to let qualified investors join using crypto.
It is backed by big names like Coinbase, Apex Group, and Envelop Risk. Archax has listed the fund as its first real-world asset in the category, placing it next to tokenised funds from BlackRock, State Street, and Aberdeen.
Graham Rodford, chief executive officer and co-founder of Archax, said: “MembersCap were looking for a partner to work with on the tokenisation, custody and distribution for their tokenised reinsurance fund.
“Digital asset innovation is exactly what Archax is all about, and we’re delighted to be providing these services to them and adding further yield-bearing digital instruments to the Archax platform.”
