OnRe Boosts Transparency for Tokenized Insurance as DeFi Demands Better Collateral

HAMILTON, Bermuda – January 16, 2026 – OnRe SAC Ltd., a regulated reinsurer bridging traditional finance with blockchain technology, has announced a significant upgrade to the transparency and verification framework for its tokenized reinsurance product, ONyc. The move, which brings in both institutional auditor Apex and on-chain verification firm Accountable, comes as digital assets backed by real-world revenue streams are increasingly being used as foundational collateral within the decentralized finance (DeFi) ecosystem.

This development highlights a critical evolution in the digital asset space. As the market matures, the focus is shifting from speculative, high-yield tokens to stable, verifiable assets that can serve as reliable building blocks for more complex financial products. The demand is no longer just for assets that generate returns, but for assets that can be trusted as collateral in lending, borrowing, and other on-chain financial activities.

“As ONyc is used more actively across lending and liquidity markets, independent verification becomes essential,” said Ayyan Rahman, Co-Founder and Chief Growth Officer of OnRe, in a statement. “Market participants need to be able to model risk, understand NAV dynamics, and assess liquidity pathways, particularly when assets are used as collateral rather than passive investments.”

From Passive Yield to Active Collateral

For years, the primary allure of Real-World Assets (RWAs) in DeFi was their ability to offer stable, non-crypto-native yields. ONyc, which represents a tokenized share in a diversified portfolio of reinsurance risk, exemplifies this model. Its returns are generated from insurance premiums paid in the real world, offering a yield source that is largely uncorrelated with the volatility of cryptocurrency markets.

This inherent stability has made assets like ONyc attractive, particularly during crypto market downturns. The underlying portfolio includes a mix of specialty insurance lines—such as cyber, marine, and travel—along with property catastrophe risk. This diversification, tied to the predictable economics of the global insurance industry, provides a buffer against the speculative swings of digital currencies. Historically, insurance-linked securities have shown almost no correlation to traditional equity markets like the S&P 500, making them a powerful diversification tool.

However, the recent trend shows that investors are no longer content to simply hold these assets and earn a passive return. Instead, they are deploying them as collateral on lending platforms like Kamino and Loopscale, and as liquidity in decentralized exchanges such as Orca and Raydium. This transition from a simple yield-bearing instrument to a functional piece of financial infrastructure—what some call “productive collateral”—marks a significant milestone for DeFi. It requires a much higher standard of transparency and reliability, as the stability of entire protocols can depend on the quality of their underlying collateral.

A Dual Approach to Building Trust

To meet these heightened expectations, OnRe is implementing a two-pronged verification strategy. This approach is designed to satisfy both the rigorous due diligence standards of institutional finance and the “don’t trust, verify” ethos of the crypto-native community.

On the institutional side, OnRe has engaged Apex Group, a global financial services provider, to conduct independent Net Asset Value (NAV) and reserve attestations. This means a traditional, reputable firm will regularly audit and confirm the value and composition of the assets backing the ONyc tokens. This level of oversight is crucial for attracting cautious institutional capital that requires familiar, regulated compliance and reporting standards.

Simultaneously, OnRe is partnering with Accountable to provide DeFi-native verification. This involves continuous on-chain monitoring of assets and operations. For an RWA token like ONyc, this means ensuring that the data being fed onto the blockchain—such as the value of the reinsurance portfolio—is accurate and tamper-proof. It allows any user, anywhere in the world, to independently verify the system’s health in real-time by inspecting the blockchain ledger. This radical transparency is a core tenet of DeFi and is essential for building trust with its user base.

The Critical Role of Liquidity

As ONyc becomes more deeply integrated as collateral across the DeFi landscape, its liquidity becomes paramount. When users borrow against an asset, the lending protocol must be able to efficiently sell, or liquidate, that collateral if the borrower’s position becomes too risky. Without a deep and active market, a wave of liquidations could cause the collateral’s price to plummet, potentially creating a cascade of bad debt and destabilizing the system.

Recognizing this, OnRe has stated that it considers secondary market liquidity a core component of its risk management framework. “Liquidity is not an optional feature in collateral systems,” Rahman noted. “It has to be treated as a core risk input from day one.”

The company’s strategy involves fostering active trading pairs on major decentralized exchanges and ensuring there are clear pathways for redeeming the tokens for their underlying value. This focus on creating a robust and liquid market is a prerequisite for ONyc’s long-term success as a collateral asset.

By combining the uncorrelated, stable-yield characteristics of reinsurance with a framework of institutional-grade and on-chain verification, OnRe is positioning ONyc not just as another RWA, but as a foundational layer for a more mature and resilient decentralized financial system. The success of this model will ultimately be measured by its ability to maintain stability and user confidence, even during periods of extreme market stress.