Bermuda-based tokenized reinsurer OnRe has announced a significant strategic move into Middle East reinsurance markets by delegating $150 million to Rhodium Re, a Dubai-based Managing General Agent. This partnership is designed to link OnRe's tokenized capital base with substantial underwriting opportunities across the Gulf Cooperation Council (GCC) countries, which include the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman.
OnRe operates through ONyc, a yield-bearing token that aims to deliver 16% annual returns. These returns are generated from reinsurance performance and the underlying collateral assets.
Partnership Details and Strategic Rationale
Rhodium Re, regulated by the Dubai Financial Services Authority and situated within the Dubai International Financial Centre, will provide OnRe with crucial regional underwriting expertise. The firm also brings established carrier relationships across the GCC markets, facilitating smoother market entry and operations.
The Managing General Agent will be responsible for facultative, treaty, and retrocession reinsurance placements. Beyond regional business, Rhodium Re will also focus on building a global property and specialty portfolio for OnRe's distribution network, indicating a broad scope for the partnership.
Dan Roberts, co-founder and CEO of OnRe, highlighted the strategic importance of the Middle East, describing it as a priority growth market. He cited the region's strong economic momentum and practical regulatory frameworks as key factors creating attractive opportunities for reinsurers possessing global capital capabilities.
Tunde Olowofila, Senior Executive Officer at Rhodium Re, commented on the partnership, emphasizing its role in bringing enhanced capital strength and technical capability to the insurance value chain.
Understanding Tokenized Reinsurance
OnRe functions as a licensed collateralized reinsurer. It leverages blockchain infrastructure on the Solana network to connect alternative capital with the substantial global property and casualty reinsurance market, estimated to be worth $800 billion.
The firm recently appointed Apex Group as its independent attestation provider. Apex Group will conduct monthly verifications of ONyc's net asset value and treasury balances, which are held across both traditional financial accounts and on-chain infrastructure.
According to Moody's, alternative reinsurance capital reached approximately $121 billion as of June 2025. Catastrophe bonds represent a significant portion of this total, accounting for roughly 45%.
OnRe developed its ONyc token in collaboration with Ethena, Solana Ventures, and RockawayX. This token offers stablecoin holders exposure to reinsurance premiums and collateral yields, providing an investment opportunity that is independent of typical cryptocurrency market cycles.