OnRe Expands Independent Verification of ONyc as Tokenized Reinsurance Sees Growing Use as Onchain Collateral

Core Viewpoint - OnRe SAC Ltd. is enhancing independent verification and transparency measures for its tokenized reinsurance vehicle ONyc, as its utilization in decentralized finance (DeFi) increases [1][2] Group 1: Independent Verification and Transparency - The update includes institutional NAV and reserve attestations through Apex and DeFi-native verification via Accountable, reflecting a shift in how yield-bearing assets are evaluated in DeFi [2][4] - The expanded verification framework aims to improve ONyc's legibility for institutional allocators and DeFi-native risk systems, providing disclosures around reserve composition, NAV performance, and portfolio structure [4][5] Group 2: Utilization in DeFi - ONyc is increasingly being used as collateral across various onchain venues, moving beyond being a yield-generating asset, indicating a broader change in asset utilization in DeFi [2][3] - The asset represents tokenized exposure to a diversified portfolio of reinsurance risk, with returns generated from real-world insurance premiums [3][6] Group 3: Liquidity and Risk Management - OnRe emphasizes secondary market liquidity as a core component of its risk framework, ensuring manageable leverage during normal and stressed market conditions [4][6] - The company asserts that liquidity is essential in collateral systems and must be treated as a core risk input from the outset [4] Group 4: Future Outlook - Long-term validation of ONyc will depend on sustained collateral adoption, consistent liquidity under stress, and ongoing third-party verification [6] - OnRe plans to expand reporting and liquidity infrastructure as ONyc's role within DeFi evolves, emphasizing the need for usable assets across market conditions [6]