Bermuda-regulated investment manager, Members Capital Management (MembersCap), has completed an investment in its initial portfolio through the fund, MCM Fund I, the first tokenised institutional-grade reinsurance fund designed for sophisticated digital asset investors and traditional allocators.
Positioned as an alternative to private equity, venture capital, and fixed income strategies, MCM Fund I provides investors with regulated and collateralised access to reinsurance through direct exposure to natural catastrophe and cyber reinsurance contracts sourced through blue-chip global partners.
All portfolio trades were executed with global reinsurers and top-tier Lloyd’s of London syndicates, and are sourced through the top three global reinsurance brokers.
The fund aims to provide access to reinsurance income for a rapidly expanding capital base of new investors seeking diversified and uncorrelated investment alternatives with attractive yield and structured liquidity.
The launch represents the growing importance of funds structuring their offerings to capitalise on the ongoing convergence between traditional finance and digital assets.
Additionally, MembersCap was selected as the first fund in the real-world assets category on the Archax platform, alongside tokenised offerings from other institutions like BlackRock, State Street, and Aberdeen.
Backed by Solana, Aptos, and Cardano and supported by Coinbase, Archax, Apex Group, and Envelop Risk, MembersCap has selected the Solana, Aptos, Cardano, and Base protocols to provide access to investors aiming to invest in eligible cryptocurrencies.
Despite being highly yield-generative, the reinsurance sector has historically been reserved for pension plans, sovereign wealth funds, and other institutional giants. Increasingly, both crypto-native investors and smaller traditional allocators are “seeking refuge from market volatility” by accessing reinsurance as a stable, diversified income stream for a balanced portfolio and to enhance returns.
For Web3 treasuries, foundations, and institutions, the fund aims to deliver high-yield opportunities and structured liquidity, derived from high-quality, real-world reinsurance returns, without exposure to DeFi volatility and over-concentration in altcoins.
Lloyd Wahed, Co-Founder and Chief Executive Officer, MembersCap, commented, “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. We’re excited to be one of the first institutional funds to emerge from this space.”
Patrick Barrett, Co-Founder and Chief Operating Officer, MembersCap, added, “Our investors– digital asset institutions, family offices, HNWIs —want to meet their goals of resiliency and long-term sustainable growth through new and more efficient means. With this novel approach, we’re seeing these investors view reinsurance as a core part of their portfolio for the first time.”
Dr. Benjamin Fox, Co-Founder and Chief Investment Officer, MembersCap, said, “This launch proves that tokenisation can bring new capital to help address the growing insurance protection gap by lowering barriers and providing access to the private reinsurance market. Our tokenised model enables a new cohort of investors to participate pari passu alongside large institutions in an uncorrelated asset class with a track record of reliable, attractive returns.”
