Bringing Real-World Reinsurance Onchain: How OnRe and ONyc Unlock Regulated, Verifiable Yield
Reinsurance is one of the world’s oldest and most reliable financial systems – the quiet engine that stabilizes global risk. For decades, access to its steady, uncorrelated returns has been limited to large institutions and specialist funds. OnRe changes that.
OnRe is a Bermuda-based, fully licensed reinsurance company combining traditional insurance operations with blockchain infrastructure. By bridging real-world risk and digital capital, we enable stablecoin holders to participate in a historically closed $800 billion market – the global reinsurance industry.
A Regulated Foundation
OnRe operates under a dual regulatory framework in Bermuda:
- The Insurance Act as an Innovative Insurer General Business (IIGB)
- The Digital Asset Business Act as a Class F (DABA) licensee
This structure allows us to conduct reinsurance business while managing digital assets as collateral. It’s not an experiment or a DeFi protocol taking on unmodeled risk – it’s a licensed reinsurer operating under the oversight of the Bermuda Monetary Authority (BMA).
Segregated Capital Protection
OnRe is established as a Segregated Account Company (SAC). Each reinsurance pool operates within its own legally distinct account – ring-fenced under Bermuda law. Capital in one account cannot be cross-pledged or exposed to another. This model has been used in traditional reinsurance for decades to protect investors and counterparties. Now, it underpins a transparent, tokenized system of capital participation where investors know exactly where their assets are and how they perform.
Introducing ONyc: Real-World Yield, Tokenized
At the center of OnRe is ONyc – a multi-collateral, yield-bearing dollar representing proportional ownership in the ONyc Segregated Account (ONyc SA). Each ONyc token reflects a share of real-world reinsurance performance. Returns are derived from two verified sources:
- Reinsurance underwriting – OnRe reinsures licensed insurers across specialty and property lines. Premiums are paid upfront, fully reserved, and recognized as income over time.
- Collateral yield – Reserves are invested in low-risk assets like tokenized treasuries, producing consistent yield through the underwriting period.
Together, these streams deliver a blended yield in the 12–16% range, net of expected claims and actuarial modeling. No emissions. No speculative trading. Just verifiable income from regulated financial activity.
How It Works Onchain
ONyc’s valuation updates daily through Chainlink and Pyth Network oracles, ensuring its onchain value always reflects the real-world portfolio’s Net Asset Value (NAV). All NAV data is sourced from regulated reinsurance programs and verified by independent service providers under BMA oversight. This structure gives investors and DeFi protocols full transparency – every performance update is auditable, verifiable, and directly tied to real economic output.
Claims and Risk Management
Every policy OnRe reinsures originates from a licensed primary insurer. Claims are verified through a structured process involving independent adjusters, auditors, and contractual validation before any payout occurs. Each exposure is capped, diversified, and modeled using actuarial standards – protecting reserves and ensuring payouts happen only under legitimate, proven circumstances. This is the same risk management rigor that governs the world’s largest reinsurers, brought fully onchain.
Liquidity and Market Access
ONyc is designed for accessibility. Tokens can be traded across Solana-based decentralized exchanges like Orca, Raydium, and Kamino, offering continuous secondary-market liquidity. Behind the scenes, OnRe maintains a stablecoin-denominated liquidity layer to support these markets, ensuring seamless trading without compromising regulatory standards. Investor capital remains in segregated reinsurance accounts, managed under Bermuda’s insurance and asset custody requirements. OnRe does not speculate, trade, or use leverage.
Why It Matters
The reinsurance market has always been a cornerstone of global financial stability, redistributing risk across institutional balance sheets. Until now, that market has been inaccessible to most investors. ONyc changes that. By bringing reinsurance yield onchain through a compliant, transparent structure, OnRe connects DeFi liquidity to real-world risk transfer. It’s not a new form of risk – it’s a new form of access. Where most DeFi yield models depend on emissions or leverage, ONyc delivers something fundamentally different: real assets, real oversight, real yield.
The Bridge Between Worlds
By streaming verified NAV data onchain and operating within Bermuda’s regulatory perimeter, OnRe creates a direct bridge between two historically separate systems – global reinsurance and decentralized finance. For investors, it means a new source of stable, uncorrelated yield. For DeFi protocols, it unlocks composable real-world yield, fully transparent and verifiable in real time. Reinsurance has always been the invisible backbone of global finance. Now, it’s onchain.
In Summary
OnRe brings one of the world’s most established financial systems, reinsurance, into the digital era. Every element, from licensing and capital segregation to yield generation and claims management, is rooted in reinsurance fundamentals. The innovation lies in how those principles are made accessible and verifiable through blockchain. OnRe makes real-world insurance risk investable, transparent, and composable – unlocking the next major frontier in real-world yield.
