OnRe Raises $5 Million as Crypto Firms Expand Into Tokenized Reinsurance

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OnRe, a Bermuda-based reinsurance company using blockchain infrastructure, has raised $5 million in a Series A funding round backed by crypto investment firm RockawayX and Nasdaq-listed Forward Industries.

The transaction reflects increasing interest in tokenized versions of insurance-linked financial products, a category that remains relatively small compared with tokenized Treasury and credit markets but has attracted attention from blockchain investors seeking alternative sources of yield.

Separate from the equity financing, Forward Industries disclosed plans to allocate up to $25 million into ONyc, a token issued by OnRe that is tied to reinsurance exposure. The proposed allocation would provide liquidity to the company’s tokenized insurance product rather than direct ownership in the business itself.

The newly raised capital is expected to support underwriting operations, infrastructure development, and integrations with decentralized finance applications built on the Solana Labs ecosystem. Assets linked to the company’s reinsurance-related products currently exceed $165 million, based on figures released alongside the Series A financing.

Insurance-Linked Assets Move Into Blockchain Markets

Insurance-linked securities have traditionally remained difficult to access for most investors because capital is often committed for long periods and secondary trading markets are limited. Blockchain-based firms are increasingly attempting to bring those products onchain in a more liquid format.

OnRe operates under regulatory frameworks in Bermuda covering both reinsurance and digital asset activities. That regulatory structure enables the firm to issue blockchain-based products tied to underwriting portfolios while operating as a licensed reinsurer.

The ONyc token gives investors exposure to diversified reinsurance portfolios and may eventually be used in decentralized finance applications such as lending and borrowing platforms.

Market analysts say tokenized insurance products remain experimental compared with more established blockchain-based real-world asset categories. Treasury-backed tokens and private credit products continue to account for most institutional activity in the sector. As the tokenized asset market matures, initiatives such as Morpho expands RWA risk services in Asia demonstrate how DeFi infrastructure is increasingly being adapted to support institutional-grade credit, liquidity, and risk services.

Crypto Firms Seek Revenue Beyond Market Trading

The investment also illustrates how some crypto-focused firms are expanding into businesses less dependent on digital asset price cycles.

Forward Industries has built positions across blockchain infrastructure, including validator operations, staking services, and tokenized finance initiatives connected to the Solana ecosystem. Previous disclosures suggest the company is pursuing blockchain-related revenue streams that are less dependent on cryptocurrency price appreciation.

Reinsurance-related returns are generally tied to underwriting performance and insured loss activity instead of token price movements, making them structurally different from most crypto-native yield products. That distinction has drawn attention from firms looking for assets that may behave independently from broader cryptocurrency market volatility.

Tokenized Reinsurance Remains Early-Stage

The funding round comes as blockchain investors continue searching for new categories of tokenized real-world assets after rapid growth in tokenized government debt markets during 2024 and 2025. The sector’s growth has also been supported by developments like SimpleChain RWA Layer 1 blockchain funding, reflecting rising demand for purpose-built blockchain networks capable of handling regulated real-world asset transactions.

Some market participants have argued that insurance-linked products could provide diversification because underwriting outcomes are influenced more by insured events than by interest rates or cryptocurrency prices.

At the same time, analysts note that reinsurance businesses involve operational and regulatory complexities not typically present in many decentralized finance products, including reserve requirements, claims management, and capital adequacy oversight.

Industry observers say the long-term viability of tokenized reinsurance products will likely depend on whether companies can maintain underwriting stability and liquidity during periods of elevated insurance losses or broader financial stress.