Members Capital Management Completes Initial Deployment of Tokenised Reinsurance Fund
MCM Fund I opens 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 take advantage of the continuing convergence between traditional finance and digital assets. Backed by Solana, Aptos, and Cardano and supported by institutions like Coinbase, Archax, Apex Group, and Envelop Risk, MembersCap has selected the Solana, Aptos, Cardano, and Base protocols to provide access to qualified investors wishing to invest using eligible cryptocurrencies.
MembersCap has been selected as the first fund in the real-world assets category on the Archax platform, sitting alongside tokenized offerings from other institutions like BlackRock, State Street, and Aberdeen.
The reinsurance opportunity
Being fundamentally uncorrelated with the financial markets, reinsurance has consistently outperformed most traditional alternatives over the past two decades. Despite being highly yield-generative, the 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 to support a balanced portfolio and enhance overall returns.
'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,' said Lloyd Wahed, Co-Founder and CEO of MembersCap. 'We're excited to be one of the first institutional funds to emerge from this space.'
'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,' said Patrick Barrett, Co-Founder and COO at MembersCap .
'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,' said Dr. Benjamin Fox, Co-Founder and Chief Investment Officer at MembersCap. '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.'
Positioned as an alternative to private equity, venture capital, and fixed income strategies, MCM Fund I provides qualified investors with regulated and collateralised access to reinsurance via direct exposure to natural catastrophe and cyber reinsurance contracts sourced through blue-chip global partners.
For Web3 treasuries, foundations, and institutions, the Fund delivers high-yield opportunities and structured liquidity, derived from high-quality, real-world reinsurance returns, without exposure to DeFi volatility and over-concentration in altcoins.
MembersCap was founded in 2024 and is backed by a strong coalition of both institutional and blockchain-native partners. This blend of traditional underwriting expertise and on-chain architecture ensures institutional-grade standards while embracing next-generation accessibility.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
9 hours ago
- The Guardian
How to manage your money in turbulent times, from savings to mortgages
It is understandable to be worried about your finances. The world seems to be lurching from one political crisis to the next, and each one has an impact on stock markets and prices. A recent survey found UK consumers are worried about a slowing economy, possible tax increases in the next budget and rising food costs. We asked experts how you should manage your money in an uncertain world. Stock markets around the world, especially in the US, were in flux earlier this year over Donald Trump's tariff plans. Things have settled down now but it is impossible to predict what shocks may be around the corner. If you hold stocks and shares – in an Isa or pension, perhaps – you may have been nervously checking their value. UK fund managers have been increasing their holdings in US companies over recent years, largely fuelled by the boom in tech stocks, so big moves over there have an impact here. However, experts say the most important thing to do is to not sell up out of panic. The analyst Dan Coatsworth of the financial advisers AJ Bell says: 'The worst thing people can do is to see troubling things in the news and then suddenly try to shift around their portfolio.' Markets have recovered in the past, he says, so patience is key. Where this advice may differ is if you need your money for something in less than five years – such as a wedding, university fees or a house purchase. Then you should look at how much risk you are taking, he says. Andrew Oxlade, an investment director at the fund management company Fidelity International, says this could mean switching some of your money away from the markets and into bonds. Bonds are issued by a corporation or country – the investor loans it money in exchange for a fixed rate of interest. They are typically bought through a fund. Many investment management companies offer funds that have a split between equities and bonds, such as Vanguard's Lifestrategy 80%. Gold, an investment that is often seen as a safe bet during times of crisis, has tripled in price over the past decade, and many investors now hold a small amount in their portfolios, Oxlade says, after years of poor performance. Investing does not have to mean buying bars or coins – Fidelity says the most direct way for most is through an exchange traded fund that tracks the price of gold. Interest rates in the UK can be affected by what goes on globally. The Bank of England is tasked with keeping inflation down. Before the war in Ukraine started, it had begun to put up rates, and as prices increased, it continued, raising them from 0.25% at the start of 2022 to 5.25% by August 2023, before holding them there for another year. The Bank has been reducing rates and is expected to make more cuts later this year, but the question is when. If you are planning to take out a new mortgage – either to buy a home or as a remortgage – you face a decision about whether to fix for the short or long term, choose a tracker or even to go on a bank's standard variable rate (SVR). Currently, the best-priced two- and five-year fixed deals have a rate of just below 4%. Nick Mendes of the brokers John Charcol says lenders are reducing rates at present largely because of falling swap rates, a key factor in how mortgages are priced. Swap rates reflect what the money markets expect to happen to interest rates in future. 'Fixed mortgage rates are more influenced by swap rates than the base rate itself, which means they are shaped by what markets think might happen in the future rather than what is happening today,' he says. Going on to a lender's SVR in the hope that fixed rates will improve later in the year is a risky strategy as the rates are high, at about 6.5%, and can change at any time and increase your monthly repayments. Tracker mortgages are also worth considering, Mendes says. These are linked to the Bank base rate. 'They tend to start lower than SVRs and often come without early repayment charges, which means borrowers can move on to a fixed deal later,' he says. Mendes says people who are remortgaging should not 'sit back and wait. Most lenders allow you to secure a new deal up to six months in advance, which is a smart way to hedge your bets,' he says. 'You can lock in a deal now as a safety net and still switch to something better if rates improve before the new deal begins.' For new buyers, Mendes says they should base decisions on what is affordable now rather than making assumptions about what may or may not happen in the future. 'The last position anyone wants to be in is having overstretched themselves on the assumption that they will be able to refinance on to something cheaper at the end of their fixed-rate period,' he adds. You are not tied to a rate until completion, so you should be able to switch if a better deal comes along. Savings rates could fall even before the Bank reduces the base rate, says Rachel Springall of the financial information site Moneyfacts, as account providers may decide that they have enough deposits for a certain product. 'If the whole market starts moving in one direction, you'll find that other peers will do the same because they don't want to put themselves too high up [in best buy tables],' she says. Until then, easy access and fixed-term rates are competitive, Springall says. The best rates this week for fixed one-year and two-year bonds are from Cynergy Bank (4.55% for the one-year and 4.45% for the two-year), while an easy access account from Chase offers 5%, although this includes a 12-month bonus and is a variable rate, so it could go down. There have been increases in the interest paid on fixed-rate bonds in recent weeks, she says. Anna Bowes of the financial advisers The Private Office says 'now is a really good time for a saver who has not been paying attention to their savings' as there is good competition in the market. If you have money in a variable-rate account it may be a good time to move it to a fixed rate. The tumultuous times that stock markets have been having since the start of the year will have had a direct effect on many people in the UK through their pensions. Often funds are heavily invested in US stocks, so the ups and downs there could be affecting your retirement saving. It is understandable if you are considering shifting money in your pension into other safer options such as bonds, says Helen Morrissey, the head of retirement analysis at the financial advice company Hargreaves Lansdown. However, unless you are cashing in your pension within the next five years, you should avoid reactions based on the international turmoil, she says. 'Over the course of your saving journey, you will hit several periods of market volatility and it's important to keep in mind that markets do recover over time,' she says. 'Making kneejerk reactions such as changing investment strategy has the potential to lock in losses as you miss out when markets do recover.' Workplace pensions are often invested in 'lifestyling' funds, which reduce the amount of risk as the holder gets older by shifting from equities to bonds. So if you are approaching retirement this may be happening automatically. If your fund has been hit by turbulence in the markets and you intend on retiring soon, Morrissey says that you may want to start to take a lower amount out from your fund than you had planned in order to allow the rest to recover from any losses caused by market turbulence. 'We suggest that people in [income] drawdown keep between one and three years' worth of essential expenditure [from their savings] in an easy access account that they can use to supplement their income during times of turbulence,' she adds. Another option, on retirement, is to invest some or all of your fund in an annuity, where returns are close to all-time highs. Annuities convert a lump sum from your pension into a regular guaranteed income for the rest of your life or a fixed term. A healthy 65-year-old can now get an annuity rate of 7.72% on average, according to the pension provider Standard Life – that means that for every £100,000 invested, they would get an annual income of £7,720. About 21 million households will see their bills decrease after the price cap was reduced this week. For a household with typical usage, the cap has dropped by £129, to £1,720 a year. The good news may not last too long, however, as there are predictions of increases in October. After the recent conflict between Iran and Israel, oil prices went up because of concerns that supplies could be affected by threats of a blockade of the strait of Hormuz. Prices later reduced after a ceasefire deal was agreed. Will Owen of the price comparison website Uswitch says the volatility of the international economy has led to uncertainty. 'We are now seeing predictions from various organisations and energy suppliers that the price cap from October onwards will probably go up,' he says. To protect yourself against a rise you could considered a fixed-rate tariff – with these each unit of energy and the standing charges are set for a certain length of time. The MoneySavingExpert site advises that you are 'very likely' to save if you can find a fixed-rate deal priced at least 5% below the current price cap, which is predicted to fluctuate. The current best deals are a 12-month fix from Next that is 8.8% below the cap, another from Outfox Energy that is 8.1% less and then a fix from EDF Energy that is 7.2% less, according to the site.
Daily Mail
18 hours ago
- Daily Mail
Should you switch out of the Wall Street danger zone and into... The land of opportunity?
In just a few months, the emerging markets of Asia, Europe and Latin America have undergone a radical change of image – from danger zone to land of opportunity. At a moment when portfolio diversification has become more vital than ever, this shift in perception is another trend that could be costly to ignore if you are a British investor. Wall Street investors, fearful of the damage that Donald Trump's tariffs could inflict on the American economy, are looking for territories where the President's policies may have less impact. Emerging markets appear to provide a solution, offering bargain shares and other advantages. Patricia Ribeiro, of American Century Investments, says: 'Long-term structural growth in emerging market nations should continue to be fuelled by favourable demographic trends, such as younger populations and rapid urbanisation – and by reforms to policy and regulations.' And Kamil Dimmich, of the emerging market specialist North of South Capital, warns 'the direction is set for more protectionism'. His caution comes ahead of Wednesday's deadline for tariff negotiations, after which Trump may reimpose double-digit levies on some countries' imports to America. But whatever unfolds on the day, emerging market fans such as Bank of America and JP Morgan Chase seem set to be joined by others, persuaded that there are gains to be made in advancing nations such as Argentina, Brazil, China, Hungary, India, Mexico, South Korea, Taiwan, Turkey and UAE. Owing to this optimism, the US S&P 500 index has been outpaced by the MSCI Emerging Markets Index this year (this covers 24 markets). As Chetan Sehgal, co-manager of the £1.9billion Templeton Emerging Market trust, points out, this performance would have been even stronger if Asian markets had not been held back by tariff apprehension. Emerging market enthusiasm is also being amplified by speculation about the future of Jerome Powell, chairman of the US Federal Reserve, whose term expires in May 2026 but who has come under increasing pressure from President Trump. This could expedite interest rate cuts, reducing the value of the dollar – and driving down the cost of borrowing in emerging markets. Rob Burdett, of Nedgroup Investments, says: 'What could trigger the unlocking of emerging markets' potential for investors? One catalyst could well be the weakening of the dollar which, historically, has coincided with good times for emerging market shares.' Some investors may still have reason to be sceptical about emerging markets. At the turn of the century, the source of growth was supposed to be the Brics (Brazil, Russia, India, China and South Africa) economies. But only India has delivered. Russia is out in the cold and the rest have faced a struggle, although the outlook for Brazil and China is more cheerful. The Shanghai Composite index is up by 5 per cent this year, powered by China's trade deal with the US as well as AI innovation. But if you are keen to broaden your investment horizons, here's what you need to know. TRIP TO THE UNKNOWN? Be prepared for a voyage of exploration, involving a considerable degree of hazard – and taking in unexpected stops such as Greece. This country used to be associated with economic stagnation, but is establishing itself as a dynamic force in Europe. Most Latin American nations seem set to be subject only to 10 per cent tariffs. Nevertheless, Brazil still looks to be an unlikely investment prospect with its double-digit interest rates, high inflation and turbulent Left-wing leader Lula Da Silva. Yet fund managers say there is the chance of the election of a more centrist government next year and Brazilian banks like Banco Bradesco, Itau Unibanco and XP are regarded as well-run institutions on which investors could take a gamble. The Mexican bank Grupo Financiero Banorte is also considered worth backing. Mexico's president Claudia Sheinbaum has kept a cool head in her dealings with Trump, aware of the vital importance of its US neighbour has to her country. Getting to know these markets may be fascinating, but the research into individual shares is time-consuming and difficult. Most investors will be better off in a fund or investment trust covering a spread of markets. The low-charge option is Fidelity Emerging Markets, which tracks the MSCI index. Best buy funds and trusts include Artemis SmartGARP Global Emerging Markets Equity, FSSA Global Emerging Markets, JP Morgan Emerging Markets, TT Emerging Markets Equity and Templeton Emerging Markets Investment Trust (Temit). The holdings of these funds and trusts can be found in their factsheets available online. It is worth checking these details to establish the level of risk – and whether you are comfortable backing certain regimes. ASIAN TECHNOLOGY Most funds and trusts prioritise Asia, concentrating on China, India, South Korea and Taiwan. Chinese tech groups such as Alibaba, Baidu and Tencent are popular holdings. But the favourite is the Taiwan Semiconductor Manufacturing Company (TSMC). This group may be threatened by China's predatory stance towards Taiwan, but TSMC is moving some production to the US and remains integral to the global artificial intelligence (AI) industrial revolution. Seghal comments: 'We hold TSMC. The US titan Nvidia may design the microchips for the generative AI system ChatGPT, but TSMC actually manufactures them.' Nvidia is one of the Magnificent Seven of US tech. Like the others in this sector, it relies on another emerging market business. Sehgal adds: 'At Temit, we also own the South Korean group Hynix. It supplies DRAM (dynamic random access memory), which stores code and data on computers.' South Korea has experienced political turbulence. Last year, for example, the former president attempted to declare martial law. But the situation has stabilised and although the country may have to cope with a 25 per cent levy, it could benefit from firms shifting manufacturing from China. EUROPE AND THE MIDDLE EAST If you wish to steer clear of China, given its trade war with the US, or suspect other Asian nations may not cope well with tariffs, there are adventures elsewhere. The Barings Emerging EMEA Opportunities trust focuses on EMEA – Europe, the Middle East and Africa. Alay Patel, its manager, says: 'The economic fundamentals of Eastern Europe are improving.' Patel says that Poland is also benefiting from factors such as defence expenditure – spending 5pc of GDP on this area – and the return of skilled workers. Meanwhile, the Gulf nations – UAE, Saudi Arabia and Qatar – are trying to lessen their reliance on oil by investing in tourism and infrastructure projects. Dimmich is particularly positive about the UAE. The prosperity of Dubai, its largest city, is being boosted by its mix of 'plentiful sunshine and low taxes'. But you should only approach emerging markets if you can afford to take a long-term view and be realistic about the potential rewards. Sehgal says that emerging markets will provide a return of 7 per cent to 8 per cent a year – far better than the yields on government bonds. This may dismay anyone who has grown accustomed to the spectacular gains provided by Magnificent Seven tech shares in recent years. But the Wall Street types who are embracing emerging markets seem undeterred and even rather excited – which is a strong alert to anyone postponing diversification this summer.
Daily Mail
18 hours ago
- Daily Mail
ALEX BRUMMER: Chancellor's emotional rollercoaster set to continue
When in difficulty, politicians grasp at straws. The weird scenes in the Commons on Wednesday of a lachrymose Chancellor and a seemingly oblivious Prime Minister as the markets tanked frame Labour's first year in office. Labour apparatchiks claim the surge in gilt yields – as Keir Starmer left Rachel Reeves blowing in the wind – as evidence that financial markets believe in the Chancellor's ironclad grip on the public finances. Bond buying by BlackRock, Schroders and Fidelity as gilt yields soared is cited as confidence that the budget rules will hold. Fascinating that L&G, among the biggest UK asset managers, says a 'lack of clarity' in the Government's fiscal stance has unsettled markets. The unusual juxtaposition of Reeves in tears on Wednesday and cackling in the company of Starmer a day later doesn't suggest stability. The markets don't really believe it. The yield on the 30-year-long bond has jumped 0.64 of a percentage point to 5.33 per cent in the 12-months since Labour won. The ten-year yield is 0.36 per cent higher at 4.56 per cent. Some of this can be attributed to Trump mayhem. UK rates shadowing the US are only part of the story. Oxford Economics suggests that the U-turns on welfare and winter fuel, together with likely revisions to Office for Budget Responsibility growth assumptions, have opened a £20billion to £30billion funding chasm to be closed in the autumn. A black hole of that size cannot be surmounted by small shifts in secondary taxes such as a bank levy or punishing wealth. Similar charges already have caused enough damage with private equity princelings among those fleeing to Milan. The Chancellor's only choice may be to raid one of the bigger pots of government income, flying in the face of manifesto promises. Freezing tax thresholds for a further two years is a possibility, even though it already has propelled millions of working people into higher bands. A surcharge on corporation tax is an option. That would be a fresh blow to business confidence. It is going to be a long, hot summer for Reeves on a personal roller-coaster. Beautiful day July 4 for this writer will always be associated with the delightful celebration in our Washington DC neighbourhood. The children's bikes would be decorated with red, white and blue ribbons and balloons, and join a procession down to the local Palisades Park. US Independence Day this year is marked by Donald Trump's 'big beautiful' tax and spending bill. It reinstates Trump's first term tax cuts for the better off and lifts spending on defence and border security. It also slashes benefits for the less well and elderly with cuts in Medicare and Medicaid. The estimated outcome is a $3.4 trillion hit to the nation debt over the next decade. That underestimates the supply side impact of lower personal and corporate tax on enterprise, entrepreneurship and output. Bank robbery A letter from a reader in Abingdon bemoans NatWest's decision to close its listed bank building in the town. Meanwhile, Santander is making no secret of its intention to shutter unspecified TSB outlets if it reclaims the bank from Sabadell. That's no way to win hearts and minds.
