Schroders Capital adds tokenisation to ILS platform

Schroders Capital’s Private Debt & Credit Alternatives (PDCA) team has integrated a tokenised capability into its insurance-linked securities (ILS) investment platform.

In collaboration with Hannover Re, the firms also executed the first real-world collateralised reinsurance transaction through the platform.

With the addition of the tokenisation capability, the control and flow of the assets held within the reinsurance agreement are digitised, modernising how collateralised reinsurance is structured, administered and accessed.

The firm uses smart contracts to improve on the traditional manual, paper-based and intermediated process through automation. This, in turn, can increase accessibility and transparency for all parties involved, allowing Schroders’ flagship ILS investment funds to gain exposure to a digital form of the reinsurance agreement.

Schroders has been recognised for its work on its ILS investment platform through its shortlisting at the Pioneer Awards. The firm is shortlisted for the editor’s choice award, celebrating the advancements it has made with its ILS tokenisation pilot.

The Pioneers celebrate innovation and creativity in institutional finance, across banking, fintech, insurance, investment and payments. The scheme has been built to showcase excellence across the evolving landscape of financial services, recognising individuals, teams and organisations at the forefront of change.

The award winners will be announced at a black-tie gala dinner at the Underglobe – Shakespeare's Global on Friday 24 April. See the full shortlist here.