Oxbridge Re chooses Coinbase Prime for custody of Bitcoin and Ethereum

Oxbridge Re, a leading reinsurer specializing in the tokenization of real-world assets (RWAs) and providing reinsurance solutions for property and casualty insurers in the US Gulf Coast, has recently revealed its innovative approach to incorporating digital assets into its financial strategy. The company, along with its subsidiary SurancePlus, has partnered with Coinbase Prime to acquire and secure Bitcoin and Ethereum as part of its treasury reserves.

This strategic move marks the company’s commitment to embracing blockchain technology and exploring the potential benefits of cryptocurrencies in its financial framework. Jay Madhu, CEO of Oxbridge, emphasized that the collaboration with Coinbase is a strategic alignment with the company’s blockchain-focused strategy, reflecting its forward-thinking approach to financial management.

In line with its strategy to diversify its financial holdings and capitalize on blockchain opportunities, Oxbridge Re recently approved the inclusion of Bitcoin and Ethereum in its treasury reserves. This decision underscores the company’s interest in digital assets with potential inflation resistance and long-term growth prospects. Additionally, it complements SurancePlus’s focus on tokenizing reinsurance securities to expand investment accessibility.

Through blockchain technology, SurancePlus aims to democratize reinsurance contracts, transforming them into a more inclusive investment class accessible to a broader range of investors beyond ultra-high-net-worth individuals and institutions. The subsidiary’s efforts to tokenize reinsurance securities have shown promising results, with SurancePlus achieving a 49.11% return on its tokenized reinsurance security, DeltaCat Re, in June last year, surpassing the initial ROI projection of 42%.

Despite these successes, Oxbridge Re reported losses for the third quarter of 2024, with a net loss of $540,000, or $(0.09) per share. However, the company noted that these losses were narrower compared to the previous year, indicating positive trends in its financial performance. Overall, Oxbridge’s strategic integration of digital assets into its treasury reserve strategy reflects its commitment to innovation, diversification, and exploring new opportunities in the evolving financial landscape.

As Oxbridge Re continues to navigate the complexities of the reinsurance industry and adopt blockchain technologies, its partnership with Coinbase Prime showcases its progressive approach to financial management. By leveraging digital assets like Bitcoin and Ethereum, the company aims to enhance its investment portfolio, drive growth, and stay ahead of the curve in a rapidly changing financial landscape. With a focus on innovation and strategic partnerships, Oxbridge Re is well-positioned to drive future success and deliver value to its stakeholders.