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Decentralised climate infrastructure platform dClimate has announced that it has launched Tyche, a blockchain-based platform designed to facilitate insurance risk transactions, which will initially focus on catastrophe reinsurance before expanding towards energy-linked weather derivatives and collateral facilities.
According to the firm, Tyche marks a breakthrough in on-chain insurance risk transfer and aims to enable greater price transparency across the reinsurance market.
Tyche enables investment in reinsurance transactions through the use of ERC-20 tokens, which are fractionalised and recorded on chain. The structure is expected to provide verifiability, transparency, and tradability for its participants.
The platform reportedly processed $20 million of notional risk during last year’s hurricane season.
dClimate also explained that it is developing yield generating vaults that would allow new market participants to transact in insurance deals without directly taking on insurance risk.
Turning attention to catastrophe bonds, which are a key catastrophe risk product, dClimate has recognised that despite the market experiencing record issuance in recent years, the company holds the view that the fundamental market continues to be illiquid and is frequently dominated and “ring-fenced” by a limited number of brokers and reinsurers.
dClimate also noted that Tyche aims to create secondary-market liquidity and reduce friction through efficiencies disintermediation and programmable settlement.
As well as this, the platform would also allow token holders to understand ongoing risk exposure better and adjust positions throughout the year, including during hurricane season.
In addition, transactions on Tyche are supported by Aegis, dClimate’s AI-powered risk modeling engine, which provides real-time pricing, expected loss modeling, and yield estimation to determine token pricing.
According to the firm, these models help to ensure that tokens are transparently priced to allow institutional and decentralised capital to converge in shared risk pools.
dClimate also indicated that future releases of Tyche will include leverage facilities, on-chain trading, automated payout execution, and pooled climate risk contracts, which are intended to further integrate climate finance with decentralised finance infrastructure.
Osho Jha, CEO of dClimate, commented: “Reinsurance is traditionally opaque, illiquid, and difficult to access. By tokenizing these transactions, we’re making climate finance programmable, transparent, and accessible to a broader market. This is what real-world asset tokenization should look like – financially sound, legally robust, and solving a pressing societal need.”
dClimate launches Tyche to bring on-chain transparency to catastrophe reinsurance was published by: www.Artemis.bm
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