Oxbridge Re, along with its subsidiary SurancePlus, has announced the selection of Coinbase Prime to facilitate the purchase and secure custody of Bitcoin and Ethereum as part of its treasury reserve strategy.
The company, which is involved in the tokenization of real-world assets (RWAs) and provides reinsurance solutions for property and casualty insurers in the US Gulf Coast, is integrating digital assets into its financial framework.
Jay Madhu (pictured above), CEO of Oxbridge, said the collaboration with Coinbase aligns with the company’s blockchain-focused strategy.
As announced last month, the reinsurer revealed that its board approved the inclusion of Bitcoin and Ethereum as part of its treasury reserves.
Oxbridge Re attributed this decision to aligning with its strategy to diversify its financial holdings while exploring blockchain-related opportunities, including cryptocurrencies with potential inflation resistance and long-term growth prospects.
It also complements SurancePlus, the aforementioned subsidiary, which focuses on tokenizing reinsurance securities as a way to broaden access to investments.
By using blockchain technology, 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, Oxbridge Re said.
The company has thus far seen some success with its tokenized ventures. In June last year, Oxbridge Re announced that SurancePlus achieved a 49.11% return on its tokenized reinsurance security, DeltaCat Re. It further noted that this performance exceeded the initial return on investment (ROI) projection of 42%.
Marring these returns, however, is the company’s losses that it reported for Q3 2024. During the period, Oxbridge Re reported a net loss of $540,000, or $(0.09) per share, for the quarter.
Still, Q3 2024 had narrower losses compared to a $7.3 million loss, or $(1.24) per share, in Q3 2023.
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