Nayms Ecosystems Ltd Opens Office In Bermuda
Nayms Ecosystems Limited, UK based startup, will be opening an office in Bermuda.
A government spokesperson said, “As a result of their confidence in Bermuda’s high regulatory standards, the level of sophistication and business development efforts, Nayms Ecosystems Limited has chosen Bermuda to open an office and begin trials.
“Nayms chose Bermuda because the island is the global leader of the Insurance Linked Security [ILS] market and also has progressive legislation and regulations for the conducting of Digital Asset business. The Bermuda Monetary Authority [BMA] is very supportive of Nayms’ innovative work, granting them a Digital Asset Business [Class M {modified}] License and an Innovative General Business Insurer license.
“Nayms is a collaboration between co-founder and CEO Daniel Roberts and Insurtech Gateway, an incubator and fund based in London. Nayms began as a project exploring the problem of sourcing cryptocurrency capacity to cover crypto-losses, given the mismatch between assets and liabilities. The solution that grew out of this problem was a truly digital contract of insurance, with wider applications across the insurance industry.
“The Nayms platform can be applied to the ILS market in a unique way. There is a liquidity problem in the ILS market, with the Nayms technology being piloted as a solution.”
Premier David Burt said, “Nayms represents a promising blend of digital assets and insurance, which showcases what the future of insurance looks like. Bermuda has taken great strides to position itself as an attractive domicile for players like Nayms and it is exciting to see the kinds of new ideas that are being developed.
“The ability to create shared digital rules around traditional insurance contracts are a game changer for the industry. They allow for increased efficiency and greater market opportunity which ensures Bermuda continues to play a leading role in the insurance linked securities market. We look forward to welcoming more innovators like Nayms who are showcasing the way digital assets will reshape the core infrastructure of traditional financial services.”
A spokesperson added, “Nayms plans to apply their ‘Smart Insurance Contracts’ to the Insurance Linked Security [ILS] market. By representing existing ILS collateral on the Nayms platform, the solution will provide an environment for capital providers to trade ILS contracts at very little frictional costs.”
Nayms CEO Daniel Roberts said, “We are very excited to be working with the Bermuda Government, the regulator and the insurance industry on the Island, having so far been made to feel very welcome as we begin piloting our solution with the market. The BMA’s knowledge and experience in the areas of insurance and digital assets gives us great confidence as we innovate in the space.”
“The Nayms team is keen to showcase this platform as a solution to the liquidity problem in the ILS market, where unknown losses after a contract matures leads to capital being ‘locked up’. By allowing capital providers to trade in and out of these positions with little frictional cost, capital can be put back to work, leaving a new owner of the initial contract to access returns over a longer time period.
Head of Business Development at MakerDAO, Greg Di Prisco, who will be providing vital technology to this solution with their stablecoin Dai said, “We’re thrilled to see Nayms accepted into the Digital Asset Sandbox. This partnership marks the Dai stablecoin’s first use in the Insurance Linked Security market and that’s an exciting achievement.”
Insurtech Gateway CEO Richard Chattock said, “We believe in the power of new technology and fresh thinking to solve old problems. Well done to the Bermuda Monetary Authority for seeing the need for a transparent trading environment for ILS contracts and paving the way for this exciting pilot. Nayms is facilitating a vital stage in the development of the insurance industry as a whole to provide liquidity for investors and insurers.”
“Nayms will begin trials over the coming months and looks forward to meeting more of the industry in Bermuda during this time to discuss collaboration going forward.”
