Oxbridge Re adds Bitcoin and Ethereum to treasury reserves

Move aligns with blockchain innovation goals

Oxbridge Re adds Bitcoin and Ethereum to treasury reserves

Reinsurance

By Kenneth Araullo

Oxbridge Re has announced that its board of directors has approved the inclusion of Bitcoin and Ethereum as part of its treasury reserves.

This decision aligns with Oxbridge’s strategy to diversify its financial holdings while exploring blockchain-related opportunities, including cryptocurrencies with potential inflation resistance and long-term growth prospects.

The move complements Oxbridge’s existing blockchain initiatives, which are led by its subsidiary, SurancePlus Inc. SurancePlus focuses on tokenizing reinsurance securities to broaden access to reinsurance investments.

By using blockchain technology, Oxbridge Re says that the subsidiary seeks to democratize reinsurance contracts, traditionally accessible only to ultra-high-net-worth individuals and institutions, and transform them into a more inclusive investment class.

Jay Madhu (pictured above), CEO of Oxbridge, said that the decision to include Bitcoin and Ethereum reflects the company’s commitment to leveraging emerging technologies for enhancing value.

“Our board of directors believes that Bitcoin, in particular, has demonstrated its reliability as a store of value amid rising global adoption, supported by significant price appreciation and growing investor confidence,” Madhu said.

As part of its upcoming developments, SurancePlus plans to introduce two new tokenized reinsurance securities for its annual contracts. The first token is designed to target a balanced yield with a return of 20%, while the second aims to offer a high yield with a targeted return of 42%.

Similar to previous tokenized securities offered by SurancePlus, the funds raised through these tokens will be used to support reinsurance contracts written by Oxbridge Re’s sidecar reinsurance vehicle, Oxbridge Re NS. Returns on the tokens will depend on the performance of these contracts.

Oxbridge Re says that its adoption of Bitcoin and Ethereum, combined with its focus on tokenized assets, signals its commitment to innovation in the reinsurance sector. By integrating blockchain technology, the company aims to deliver more accessible and diversified financial solutions to a broader range of investors.

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