OnRe, a Bermuda-based tokenized reinsurer, announced it has delegated $150 million to Rhodium Re, a Dubai-based managing general agent (MGA), marking a strategic entry into the Middle Eastern reinsurance market.
This partnership aims to connect OnRe's tokenized capital base with acquisition opportunities in Gulf Cooperation Council (GCC) countries, including the United Arab Emirates (UAE), Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman.
OnRe operates via the yield-generating token ONyc, aiming for an annual return of 16%, funded by reinsurance performance and returns from collateral assets.
What happened
Rhodium Re is a company based in the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority (DFSA), providing OnRe with regional expertise in acquisitions and an established network of insurers across the GCC market.
This MGA will manage facultative, proportional and non-proportional treaty, and retrocession reinsurance placements, and is also expected to build a global property and specialty portfolio for OnRe's distribution network beyond regional business.
Dan Roberts, co-founder and CEO of OnRe, stated that the Middle East has become a significant growth market for reinsurance companies with global capital capabilities, due to its strong economic momentum and pragmatic regulatory environment.
Tunde Olowofila, Senior Executive at Rhodium Re, explained that this partnership provides capital strength and technological capabilities across the entire insurance value chain.
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Tokenized reinsurance environment
OnRe, a collateralized reinsurer, connects alternative capital to the global property and casualty reinsurance market, valued at $80 billion, through a Solana-based blockchain infrastructure.
The company has appointed Apex Group as an independent verification agency to audit ONyc's net asset value (NAV) and financial balances held in traditional banking accounts and on-chain infrastructure on a monthly basis.
According to Moody's, alternative reinsurance capital reached approximately $12.1 billion as of June 2025, with cat bonds accounting for about 45% of that amount.
OnRe developed ONyc through partnerships with Ethena, Solana Ventures, and RockawayX, offering crypto holders exposure to reinsurance premiums and collateral returns independent of cryptocurrency market cycles.
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