DClimate Launches Tyche to Bring On-Chain Transparency to Catastrophe Reinsurance
•February 9, 2026
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Why It Matters
By converting opaque reinsurance contracts into transparent, tradable tokens, Tyche lowers entry barriers and attracts diversified capital, potentially reshaping the catastrophe‑bond market.
Key Takeaways
- •Tyche tokenizes reinsurance risk via ERC‑20 tokens
- •$20 million notional risk processed during last hurricane season
- •AI engine Aegis provides real‑time pricing and loss modeling
- •Platform targets secondary‑market liquidity and disintermediation
- •Future upgrades include leverage, on‑chain trading, automated payouts
Pulse Analysis
The reinsurance sector has long been criticized for its opacity and limited liquidity, with a handful of brokers controlling the majority of catastrophe‑bond issuance. Traditional structures require extensive paperwork and opaque pricing models, deterring many institutional investors from entering the space. As climate‑related losses rise, the need for a more efficient, transparent mechanism to distribute risk has become urgent, creating a fertile ground for blockchain solutions that can streamline data flow and settlement.
Tyche tackles these challenges by fractionalising reinsurance contracts into ERC‑20 tokens, allowing participants to buy, sell, or hold precise slices of risk. Integrated with dClimate’s Aegis AI engine, the platform delivers real‑time loss projections and yield estimates, ensuring token prices reflect current exposure. This on‑chain representation not only enhances verifiability but also opens a secondary market where liquidity can be sourced without traditional intermediaries. By offering yield‑generating vaults, Tyche further lowers the barrier for capital that prefers exposure without assuming direct underwriting risk.
Looking ahead, Tyche’s roadmap includes leverage facilities, automated payout execution, and pooled climate‑risk contracts, positioning it at the intersection of climate finance and decentralized finance (DeFi). If successful, the model could attract both conventional reinsurers and crypto‑native investors, fostering a more resilient risk‑transfer ecosystem. The broader implication is a shift toward programmable climate assets, where smart contracts enforce settlement terms, reduce settlement times, and expand access to climate‑linked capital markets.
dClimate launches Tyche to bring on-chain transparency to catastrophe reinsurance
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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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