Cayman Islands-based reinsurer Oxbridge Re’s Web3-focused subsidiary, SurancePlus Inc., has signed a partnership agreement with Zoniqx, a digital asset manager, designed to expand SurancePlus’ footprint as it aims to revolutionise the reinsurance industry by leveraging blockchain technology to tokenize reinsurance contracts.
Oxbridge Re and its subsidiaries are engaged in tokenized Real-World Assets, initially in the form of tokenized reinsurance securities, and reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States.
Zoniqx has previously partnered with Ripple and PwC as part of their Tokenization & Digital Assets Scale program.
Jay Madhu, President and Chief Executive Officer, Oxbridge Re, commented: “Last year, SurancePlus incorporated digital innovations and Web3 insights, democratizing access to reinsurance as an alternative investment. We believe we were the first publicly traded company to raise capital for catastrophe reinsurance risks through the sale of tokenized reinsurance securities.
“Building on that success, we are delighted to have partnered with Zoniqx and we believe their state-of-the-art tokenization and digital asset lifecycle management offerings will also further enhance our RWA Tokenization and Web-3 capabilities. We have also closed our 2024 EpsilonCat Re offering and are targeting returns of approximately 42%.”
Sanjeev Birari, Co-Founder and CBO, Zoniqx, concluded, “This collaboration with Oxbridge Re and SurancePlus marks a significant milestone in advancing RWA tokenization. By leveraging our state-of-the-art TALM system and the DyCIST protocol, we are showcasing the reliability and versatility of our asset-agnostic technology in the reinsurance industry.
“Partnering with a listed NASDAQ company like Oxbridge Re speaks volumes about the robustness of our solutions. This partnership enhances transparency, security, and efficiency in the tokenization of reinsurance securities, validating our vision and unlocking new opportunities for investors. We’re thrilled to bridge traditional finance with digital ecosystems, reshaping the future of digital asset management and driving accessibility in financial markets.”
Simultaneously, SurancePlus has also completed a private placement of 287,705 Participation Shares represented by the digital tokens, EpsilonCat Re under a 3-year Participation Share Investment Contract, approximately raising $2.88 million.
The offering is the second year of the Cat Re series, with the tokens having been issued on the Avalanche blockchain and a target 42% return.
Surpassing original projections, SurancePlus previously reported a 49.11% return on its DeltaCat Re tokenized reinsurance security.
The company stated, “The EpsilonCat Re tokens were offered to United States accredited investors under Rule 506(c) of US Securities and Exchange Commission (SEC) Regulation D and to non-US investors pursuant to Regulation S of the US Securities Act 1933, as amended.”
