Schroders Capital and Hannover Re Complete First Tokenized Reinsurance Transaction

Gate News message, April 24 — Schroders Capital, the private markets division of Schroders, and Hannover Re have launched a tokenized reinsurance capability within Schroders’ Private Debt and Credit Alternatives insurance-linked securities platform. The collaboration marks a significant advancement in applying blockchain technology to the reinsurance sector, with the firms completing the first real-world collateralized reinsurance transaction executed under this framework.

The tokenized platform uses smart contracts to automate reinsurance processes, reducing reliance on manual workflows and intermediaries while improving transparency and operational efficiency. The system digitally represents assets involved in reinsurance contracts and incorporates exposure to money market instruments to enhance yield generation. This initiative builds on a 2024 internal pilot conducted by both organizations and represents the transition from testing to live implementation. The global insurance-linked securities market is valued at approximately $130 billion.

The tokenized capability is being rolled out through selected strategies within Schroders Capital’s insurance-linked securities offerings, providing institutional investors with access to digitally structured reinsurance instruments. The project involved collaboration between Schroders Capital, Hannover Re, and i.AM Innovation Lab. Archax provided tokenization and custody services, enabling digital access to returns from Schroders’ money market fund. Schroders has also established a Global Digital Assets Centre of Excellence in Singapore to advance its digital asset capabilities.

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