Summary:
Oxbridge Re partners with Coinbase Prime for Bitcoin and Ethereum custody.
The move is part of a broader strategy to integrate digital assets into its treasury reserves.
The company aims to leverage cryptocurrencies for inflation resistance and long-term growth.
SurancePlus is focused on tokenizing reinsurance securities to democratize investments.
Despite a successful 49.11% return on tokenized securities, the company reported a $540,000 loss in Q3 2024.
Oxbridge Re's Strategic Move
Oxbridge Re, alongside its subsidiary SurancePlus, has announced a significant partnership with Coinbase Prime to enhance its treasury reserve strategy by purchasing and securing custody of Bitcoin and Ethereum. This decision marks a pivotal step in integrating digital assets into its financial framework.
Embracing Digital Assets
The reinsurer, which is engaged in the tokenization of real-world assets (RWAs), aims to diversify its financial holdings while exploring blockchain-related opportunities. According to Jay Madhu, CEO of Oxbridge, this collaboration aligns perfectly with the company’s blockchain-focused strategy.
Inclusion of Bitcoin and Ethereum
Last month, Oxbridge Re's board approved the inclusion of Bitcoin and Ethereum as part of its treasury reserves. The decision reflects the company's strategy to leverage cryptocurrencies that potentially offer inflation resistance and long-term growth prospects.
Transforming Reinsurance
SurancePlus, Oxbridge's subsidiary, focuses on tokenizing reinsurance securities to broaden investment access. By utilizing blockchain technology, the company aims to democratize reinsurance contracts, making them accessible to a wider range of investors beyond just ultra-high-net-worth individuals and institutions.
Successful Ventures Amid Losses
Oxbridge Re has reported some success with its tokenized ventures. In June of last year, SurancePlus achieved a remarkable 49.11% return on its tokenized reinsurance security, DeltaCat Re, surpassing the initial ROI projection of 42%. However, the company also faced challenges, reporting a net loss of $540,000 for Q3 2024, although this was an improvement compared to a $7.3 million loss in Q3 2023.
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