Why Reinsurance Could Become DeFi’s Best Collateral | Ryan Connor & Ayyan Rahman

Reinsurance markets offer a unique, uncorrelated yield profile that serves as a critical ballast for diversified portfolios, contrasting sharply with the high volatility of crypto-native assets. By tokenizing these reinsurance exposures, the ONry protocol bridges the gap between traditional insurance-linked securities and decentralized finance, providing investors with transparent, liquid access to global peak peril risks. This integration allows for sophisticated utility, such as using tokenized reinsurance as productive collateral on platforms like Camino. As infrastructure matures, the shift from speculative crypto assets toward consistent, real-world yield sources is accelerating. With reinsurance currently experiencing a secular decline in landfall hurricane frequency and improved climate modeling, the asset class presents a compelling opportunity for institutional-grade, risk-adjusted returns that remain largely independent of broader economic cycles and crypto market fluctuations.