Collateral Composition
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The collateral backing ONyc reflects exposure to regulated reinsurance programs and supporting reserve assets held within the underlying segregated accounts. Together, these positions are designed to generate stable, low volatility returns derived from real insurance performance and conservative collateral management.
OnRe manages collateral with three priorities:
Capital preservation
Stable, predictable returns
Clear, transparent reporting
Capital is allocated across active reinsurance policies, upcoming underwriting opportunities, liquidity reserves, and supporting collateral assets. The portfolio is diversified across both fiat and onchain holdings, with exposure generally consisting of:
Collateral deployed into active reinsurance contracts
Capital reserved for upcoming underwriting opportunities
Liquidity buffers maintained for redemptions and operational flexibility
Fiat money market instruments and cash equivalents
Regulated stablecoin yield strategies and onchain treasury positions
Collateral yield is intentionally conservative and designed to remain stable and predictable over time. Returns are primarily driven by reinsurance premium income, prevailing money market rates, and regulated stablecoin yield strategies supporting portfolio liquidity and reserve management.
The collateral supporting ONyc is backed by a diversified mix of fiat and onchain reserve assets selected for liquidity, transparency, and capital preservation characteristics. These assets include short duration treasury exposure, regulated stablecoins, and institutional yield bearing reserve instruments used as part of broader collateral and liquidity management.
Underlying reserve assets currently include:
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