OnRe Finance has closed a $5 million strategic funding round as it doubles down on tokenized reinsurance built on Solana — and one of the backers plans to invest much more.
What happened
- OnRe raised $5 million in a round co-led by Solana-focused treasury firm Forward Industries (Nasdaq: FWDI) and multi-strategy digital asset investor RockawayX, according to a GlobeNewswire release.
- Separately, Forward said it “intends to deploy up to $25 million into ONyc,” OnRe’s yield-bearing RWA token on Solana. That intended allocation is distinct from the equity raise.
Why it matters
- The new capital will accelerate OnRe’s roadmap: expanding underwriting programs, hiring, and deeper integration of its products into Solana’s DeFi ecosystem.
- ONyc converts stablecoins into reinsurance collateral and distributes returns from both reinsurance premiums and collateral yield. ONyc pools are integrated with major Solana DeFi venues and can be used as collateral for lending, borrowing and looping strategies — turning reinsurance-backed cash flows into composable on-chain capital.
- OnRe is regulated in Bermuda under the Insurance Act and the Digital Asset Business Act, enabling it to accept digital assets as collateral for traditional reinsurance contracts and to flow underwriting returns to on-chain investors.
Context and spin
- Forward frames the investment as part of a pivot in its Solana treasury strategy: moving beyond staking yield toward “high-quality, real-world cash flows that are both complementary and uncorrelated.”
- RockawayX, a long-time Solana backer with investments across the ecosystem, argues OnRe’s approach is capital-efficient — saying it can “generate the same revenue from $10 million in TVL as a $500 million money market fund” because reinsurance premiums and collateral income stack efficiently.
- OnRe has already experimented with structured products such as the ONe token, which targeted projected returns north of 30% by combining reinsurance performance, collateral yields, and token incentives. The firm is positioning its product suite against the backdrop of the roughly $750 billion global reinsurance market.
Bottom line
This deal signals growing institutional interest in tokenized, RWA-backed DeFi primitives on Solana. With regulatory footing in Bermuda and plans to deepen DeFi integrations, OnRe aims to turn traditional reinsurance cash flows into programmable, composable capital — and a major Solana treasury player is ready to provide significant liquidity to that vision.
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