Oxbridge announces Strategic Partnership with Zoniqx a pioneer in digital asset management & a successful capital raise for Epsilon Cat Re
Oxbridge Re Holdings (NASDAQ: OXBR) has announced two significant developments through its Web3-focused subsidiary, SurancePlus Inc. Firstly, SurancePlus has partnered with Zoniqx, a digital asset management pioneer, to expand its footprint in tokenizing reinsurance securities. This collaboration aims to revolutionize the reinsurance industry by leveraging blockchain technology.
Secondly, SurancePlus has successfully completed a private placement of 287,705 Participation Shares, represented by EpsilonCat Re digital tokens, raising approximately $2.88 million. These tokens, issued on the Avalanche blockchain, have a targeted 42% return over a 3-year period. This follows the success of their previous DeltaCat Re offering, which achieved a 49.11% return. The EpsilonCat Re tokens were offered to accredited investors in the US under SEC Regulation D and to non-US investors under Regulation S.
- Partnership with Zoniqx to expand tokenization capabilities in reinsurance
- Successful private placement raising $2.88 million through EpsilonCat Re tokens
- Targeted 42% return on EpsilonCat Re tokens over 3 years
- Previous DeltaCat Re offering achieved 49.11% return, exceeding projections
- None.
The strategic partnership between Oxbridge Re Holdings and Zoniqx could have significant implications for both companies. From a financial perspective, the collaboration aims to leverage blockchain technology to tokenize reinsurance contracts, which is not only innovative but also could potentially enhance operational efficiency and transparency. The completion of a $2.88 million capital raise for EpsilonCat Re tokens is a notable achievement. The previously reported 49.11% return on DeltaCat Re tokens sets a high benchmark and while the targeted 42% return for EpsilonCat Re is slightly lower, it remains attractive.
However, investors should be cautious about the high return rates often associated with higher risks, typical in the reinsurance and digital asset space. The use of blockchain technology and tokenization introduces new dynamics that could either mitigate or amplify these risks. Evaluating the performance of these tokens over a longer period will be important to assess their sustainability.
The tie-up with Zoniqx, especially given their previous partnerships with Ripple and PwC, adds credibility to the initiative and could potentially attract more investors. Yet, it's essential to monitor how this partnership will translate into actual financial metrics and performance improvements in the coming quarters.
From a technological standpoint, the partnership between Oxbridge Re and Zoniqx is intriguing. The integration of Zoniqx’s advanced tokenization and digital asset lifecycle management tools could revolutionize the reinsurance sector. By utilizing blockchain technology, particularly on the Avalanche blockchain, the companies aim to enhance transparency, security and efficiency in managing reinsurance contracts.
The use of Zoniqx’s TALM system and DyCIST protocol highlights the potential for creating a secure and versatile digital asset environment. This move is consistent with the broader trend of tokenizing real-world assets to improve liquidity and accessibility. However, the success of this initiative will depend on the robustness of the technology and the ability to seamlessly integrate these digital tokens into the existing financial ecosystem.
For retail investors, understanding the technical aspects such as blockchain integration and token security protocols is essential. While these technological advancements offer promising benefits, they also come with complexities and potential vulnerabilities that need to be managed effectively.
The partnership and capital raise announced by Oxbridge Re and SurancePlus could have broader market implications. The successful issuance of EpsilonCat Re tokens on the Avalanche blockchain indicates a growing acceptance and maturity of blockchain-based financial instruments in traditional markets. The targeted return of 42% for these tokens is competitive, suggesting a strong demand for such innovative investment opportunities.
Moreover, the collaboration with Zoniqx, a company with established partnerships in the digital asset space, could enhance Oxbridge’s market positioning and attract a wider investor base. This move could serve as a bellwether for other firms in the reinsurance industry considering similar strategies to tokenize assets and raise capital through digital means.
Investors should consider the potential market impact of this innovative approach and the ability of Oxbridge Re to replicate its past success with DeltaCat Re tokens. While the prospects are promising, it's important to note the nascent stage of the market for such tokenized assets and the inherent uncertainties associated with it.
GRAND CAYMAN, Cayman Islands, July 17, 2024 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (Nasdaq: OXBR) (“Oxbridge Re”), together with its subsidiaries which is engaged in the business of tokenized Real-World Assets (“RWAs”) initially in the form of tokenized reinsurance securities, and reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States, announced that its Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has signed a partnership agreement with Zoniqx, a pioneer in digital asset management who previously announced a partnership with Ripple and PwC as part of their Tokenization & Digital Assets Scale program. This collaboration aims to further expand the footprint of SurancePlus as it revolutionizes the reinsurance industry by leveraging blockchain technology to tokenize reinsurance contracts and facilitate their deployment on blockchain ecosystems.
Additionally SurancePlus Inc., a subsidiary of Oxbridge, completed a private placement of 287,705 Participation Shares represented by the digital tokens, EpsilonCat Re under a 3-year Participation Share Investment Contract, raising approximately
SurancePlus previously reported a remarkable
The EpsilonCat Re tokens were offered to United States (“US”) accredited investors under Rule 506(c) of US Securities and Exchange Commission (SEC) Regulation D and to non-US investors pursuant to Regulation S of the US Securities Act 1933, as amended.
Jay Madhu, President and CEO of Oxbridge Re, commented: "Last year, SurancePlus incorporated digital innovations and Web3 insights, democratizing access to reinsurance as an alternative investment. We believe we were the first publicly traded company to raise capital for catastrophe reinsurance risks through the sale of tokenized reinsurance securities. Building on that success, we are delighted to have partnered with Zoniqx and we believe their state-of-the-art tokenization and digital asset lifecycle management offerings will also further enhance our RWA Tokenization and Web-3 capabilities. We have also closed our 2024 EpsilonCat Re offering and are targeting returns of approximately
Co-Founder and CBO of Zoniqx, Sanjeev Birari, said: "This collaboration with Oxbridge Re and SurancePlus marks a significant milestone in advancing RWA tokenization. By leveraging our state-of-the-art TALM system and the DyCIST protocol, we are showcasing the reliability and versatility of our asset-agnostic technology in the reinsurance industry. Partnering with a listed NASDAQ company like Oxbridge Re speaks volumes about the robustness of our solutions. This partnership enhances transparency, security, and efficiency in the tokenization of reinsurance securities, validating our vision and unlocking new opportunities for investors. We're thrilled to bridge traditional finance with digital ecosystems, reshaping the future of digital asset management and driving accessibility in financial markets."
About Zoniqx
Zoniqx, ("Zoh-nicks") formerly known as Tassets, stands as a beacon in financial technology from Silicon Valley, specializing in Tokenization Platform as a Service (TPaaS). It adeptly transforms Real World Assets into Digital Assets. The cornerstone of its offerings, the Tokenized Asset Lifecycle Management (TALM) solution, embraces the DyCIST - Dynamic Compliant Interoperable Security Token Protocol built on ERC-7518 standard, ensuring utmost security and scalability. Central to Zoniqx's ecosystem is SecureConnect, a groundbreaking platform that seamlessly bridges asset tokenization with institutional liquidity, amplifying market reach and ensuring compliance. This synergy positions Zoniqx not just as a provider but as an innovator at the forefront of digital asset transformation. Zoniqx offers an interoperable, compliant infrastructure for the RWA tokenization market, enabling global liquidity and DeFi integration through its end-to-end ecosystem of SDKs and APIs. Zoniqx pioneers on-chain, fully automated RWA deployment on public, private, and hybrid chains. To explore how Zoniqx can assist your organization in unlocking the potential of tokenized assets or to discuss potential partnerships and collaborations, please visit their contact page.
About Oxbridge Re Holdings Limited
Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries SurancePlus Inc., Oxbridge Re NS, and Oxbridge Reinsurance Limited.
Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.
Our Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.
Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
+1 345-749-7570
jmadhu@oxbridgere.com
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 26th March 2024. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Any forward-looking statements made in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company’s expectations or any related events, conditions or circumstances change.
FAQ
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