Dom Re IC, a Guernsey-domiciled ILS reinsurance transformer and incorporated cell of Solidum Re, with its most recent placement, issued what it believes to be the first notes to ever have been digitized on a private blockchain. Referred to as the ‘ILSBlockchain’, the mechanism has replaced the role of a traditional settlement system such as Euroclear or DTC for this note issue.
On the issue date, the paying agent created cryptographically-certificated notes on the ILSBlockchain and then the investors were able to execute, peer-to-peer with the paying agent, delivery-vs-payment transactions on the ILSBlockchain to purchase the newly created notes.
Cedric Edmonds, Director of Solidum Re, whose idea it was to use a blockchain and who was key in the design and implementation of the ILSBlockchain and surrounding structural mechanics, explained that Dom Re required an alternative to Euroclear. He said it was becoming increasingly difficult to access Euroclear efficiently for smaller private placement note issues.
“It was a case of necessity being the mother of invention,” said Edmonds.