Oxbridge Re partners with Zoniqx to further expand blockchain capabilities

Oxbridge Re partners with Zoniqx to further expand blockchain capabilities | Insurance Business Australia

Reinsurance

Oxbridge Re partners with Zoniqx to further expand blockchain capabilities

Holding firm has also announced a successful capital raise for Epsilon Cat Re

Reinsurance

By
Kenneth Araullo

Oxbridge Re Holdings, along with its subsidiaries engaged in tokenized Real-World Assets (RWAs) and reinsurance solutions for property and casualty insurers in the Gulf Coast region of the United States, announced that its Web3-focused subsidiary, SurancePlus Inc, has entered into a partnership with Zoniqx.

Zoniqx, known for its work in digital asset management, previously announced collaborations with Ripple and PwC as part of their Tokenization & Digital Assets Scale program.

This new partnership aims to expand SurancePlus’s presence in the reinsurance industry through blockchain technology, enabling the tokenization of reinsurance contracts and their deployment on blockchain ecosystems.

SurancePlus, a subsidiary of Oxbridge, also completed a private placement of 287,705 Participation Shares represented by digital tokens, EpsilonCat Re, under a 3-year Participation Share Investment Contract, raising approximately $2.88 million. This offering is the second year of the Cat Re series. The tokens, issued on the Avalanche blockchain, have a targeted 42% return.

Previously, SurancePlus reported a 49.11% return on its DeltaCat Re tokenized reinsurance security, surpassing initial projections. Oxbridge Re highlights this success as the potential of digital innovations in reinsurance and sets a precedent for future offerings like the EpsilonCat Re token.

The EpsilonCat Re tokens were offered to USaccredited investors under Rule 506(c) of the US Securities and Exchange Commission (SEC) Regulation D and to non-US investors pursuant to Regulation S of the US Securities Act of 1933, as amended.

Jay Madhu (pictured above), president and CEO of Oxbridge Re, commented that 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%,” Madhu said.

Sanjeev Birari, co-founder and CBO of Zoniqx, stated that the collaboration with Oxbridge Re and SurancePlus marks a significant step 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,” Birari said.

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