Castle Technologies

Hedge the unhedgeable

[Boring_Business @BoringBiz_]

Genuinely think one of the most interesting opportunities over the next few years will be building companies that facilitate insurance transactions on behalf of businesses by utilizing prediction markets

This story is incredible

> A northern California rancher uses goats to help remove wildfire risk and hires 8 herders who work around the clock

> California introduces a law that would basically 4x labor cost for the rancher

> The rancher goes to a startup named Castle to help buy insurance for this risk

> Castle works with Susquehanna Group to create a tailor made insurance product to provide coverage on the regulatory risk using prediction markets

Feels like a lot of things that would have never been under the umbrella of traditional insurance can now be hedged through financial markets

[Castle Technologies @castle_tech_]

Read our CNBC exclusive here: https://t.co/PfqGJMh8fU

[Castle Technologies @castle_tech_]

Introducing Castle

A company, today, is an unintentional wrapper of macro events: an airline is an embedded oil trade, a solar developer is a tax-credit bet, and a data center is a wager on permits clearing before a moratorium lands. These exposures are intangible, lack historical data, and, therefore, remain unprotected on corporate balance sheets.

On the other hand, there are players who actively seek this risk. As quantitative traders, we modeled these events, and we craved more avenues to express our opinions and to provide liquidity.

Castle exists to bridge this gap. We leverage markets and models to cover the risks that insurers won’t, enabling businesses to focus solely on their execution.

Read about one of our recent trades, in collaboration with our friends at Susquehanna and @Kalshi , as a CNBC exclusive linked below.

We were quants, engineers, and hedge fund managers. Now, our Mission is to reprice one of the world’s oldest and largest markets.

Find out more about Castle’s Mission below

[Castle Technologies @castle_tech_]

Read about our Mission here: https://t.co/BbWZXeKJA7