Oxbridge Re’s RWA Subsidiary SurancePlus reports 49% Realized return on its 2023/24 DeltaCat Re Tokenized Reinsurance Securities
Oxbridge Re Holdings announced a 49.11% return on its DeltaCat Re tokenized reinsurance security for the 2023/24 period, exceeding its initial projection of 42%. The digital security was offered to US accredited investors under SEC Regulation D and to non-US investors pursuant to Regulation S. Jay Madhu, President and CEO, highlighted the integration of digital innovations that made reinsurance more accessible through the Avalanche blockchain. The company looks forward to the future with the upcoming EpsilonCat Re token capital raise. This achievement underscores Oxbridge Re's commitment to pioneering in the tokenized real-world asset (RWA) market.
- SurancePlus reported a 49.11% return on DeltaCat Re, exceeding the 42% initial projection.
- Integration of digital innovations to enhance reinsurance accessibility through Avalanche blockchain.
- Positive outlook with upcoming EpsilonCat Re token capital raise.
- Successful offering of securities under SEC Regulation D and Regulation S, broadening investor base.
- PR does not clarify risks associated with tokenized securities.
- Potential regulatory risks associated with offering unregistered securities under Regulation D and S.
- Uncertainty in long-term sustainability of high returns in tokenized reinsurance.
Insights
From a financial perspective, the reported 49.11% return on the DeltaCat Re tokenized reinsurance security is a remarkable figure, significantly exceeding the initial projection of 42%. This indicates the company's adeptness in managing digital asset investments and suggests a promising return for similar future tokenized securities. Importantly, the use of tokenized reinsurance securities offers a novel investment pathway, potentially attracting more investors who are interested in blockchain-based financial products. However, investors should be cautious of the regulatory landscape and market volatility that comes with digital assets.
In the short term, this high return is likely to boost investor confidence and could lead to increased interest in the upcoming EpsilonCat Re token. In the long term, the integration of blockchain technology in reinsurance may position Oxbridge Re as a pioneer in the market, but this will depend on the company’s ability to consistently deliver strong returns and navigate regulatory challenges.
From a technical standpoint, the utilization of the Avalanche blockchain for the DeltaCat Re tokenized reinsurance security is noteworthy. Avalanche is known for its high throughput and low latency, which can enhance transaction efficiency and security. This choice of blockchain reflects a strategic move to leverage cutting-edge technology for financial products, making reinsurance more accessible and potentially more transparent through tokenization. The success of DeltaCat Re could set a precedent for future projects, showcasing the viability of blockchain in traditional financial sectors.
However, it is essential to consider the technological risks, such as cybersecurity threats and the reliability of the blockchain network. As the technology is still evolving, continued innovation and risk management will be important for maintaining investor trust and ensuring the long-term success of these digital securities.
The introduction and success of DeltaCat Re reflect a broader trend towards tokenized real-world assets (RWAs) in the financial market. This trend is driven by the increasing interest in digital assets and decentralized finance (DeFi). By offering tokenized reinsurance securities, Oxbridge Re is tapping into a growing market segment that could provide substantial growth opportunities. The impressive return on DeltaCat Re serves as a proof of concept, potentially attracting both institutional and retail investors looking for alternative investments outside traditional financial instruments.
However, market acceptance of such innovative products can be slow and regulatory scrutiny can be an obstacle. The company’s ability to educate the market about the benefits and risks of tokenized assets will be key to its success. Investors should watch for further developments in this space and how competitors respond to this technological advancement.
GRAND CAYMAN, Cayman Islands, June 11, 2024 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (Nasdaq: OXBR) (“The Company”), together with its subsidiaries is engaged in the business of tokenized Real-World Assets (“RWAs”) initially in the form of tokenized reinsurance securities, and reinsurance solutions primarily to property and casualty insurers, today announced that its Web3-focused, subsidiary, SurancePlus Inc. (“SurancePlus”), earned an impressive
The DeltaCat Re digital security was 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 on the returns of the DeltaCat Re Token delivered by SurancePlus, “Last year, SurancePlus enhanced Oxbridge Re’s special purpose vehicle, Oxbridge Re NS, by integrating digital innovations and insights by offering an RWA tokenized security, thus making reinsurance more accessible as an alternative investment through the Avalanche blockchain. We are pleased with the impressive returns for DeltaCat Re token investors. Looking ahead, we are excited about the long-term prospects of our business as we approach the close of our capital raise for the 2024/25 EpsilonCat Re Token’’.
Disclaimer: This press release does not constitute an offer to sell nor a solicitation of an offer to buy the DeltaCat Re tokens or the Series DeltaCat Re tokenized interests underlying the tokens (the “Securities”). The Securities are not required to be, and have not been, registered under the United States Securities Act of 1933, as amended, in reliance on the exemptions provided by Regulation S and Regulation D (SEC Rule 506(c)) thereunder. Offers and sales of the Securities are made only by, and pursuant to, the terms set forth in the Confidential Private Placement Memorandum relating to the Securities. The offering of the Securities is not being made to persons in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky, or other laws of such jurisdiction.
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 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. 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.
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