OnRe's ONyc Lending Market on Kamino Crosses $150M as Institutional Capital Backs On-Chain Reinsurance

The lending market for OnRe ONyc$1.11+0.5% OnRe's yield-bearing token on Kamino Finance KMNO$0.018-3.9% Kamino Finance has crossed $150M in total market size, per Kamino's official announcement. The milestone arrives roughly six weeks after Forward Industries and RockawayX co-led a $5M Series A in OnRe and marks the largest on-chain reinsurance market to date on Solana.

How OnRe Generates Reinsurance Yield Through ONyc

OnRe is a Bermuda-licensed reinsurer operating under dual regulatory approval: an Innovative Insurer General Business license and a Class F Digital Asset Business Act license from the Bermuda Monetary Authority. That dual status makes it, per the company, the first reinsurer licensed under both frameworks, allowing it to accept digital assets as collateral and run a blockchain-native reinsurance operation.

The company purchases risk from primary insurers that need to offload exposure from catastrophe events such as hurricanes or earthquakes. It collects premiums upfront and recognizes income as coverage periods elapse. ONyc, OnRe's yield-bearing token, gives depositors exposure to the resulting cash flows. The yield comes from two sources: reinsurance underwriting premiums, which RockawayX estimates produce 8–10% annually when diversified across risk types and geographies, and the return on collateral held in yield-bearing stablecoins and tokenized treasuries. Combined, OnRe targets a blended base yield of approximately 9–15% APY. Apex Group conducts monthly independent attestations of NAV and treasury balances.

The core pitch is that reinsurance returns follow actuarial and weather models rather than financial-market cycles, making the yield uncorrelated to cryptocurrency price movements, and to equity markets broadly.

ONyc as Collateral on Kamino: Mechanics and Incentives

ONyc launched on Kamino as collateral for borrowing and lending, becoming one of the first reinsurance-backed assets usable as collateral in Solana DeFi. Pricing uses Chainlink's Onchain NAV solution via Data Streams for real-time, tamper-resistant valuation. Kamino secures over $700M in stablecoin TVL and manages $4B or more in total assets, giving ONyc substantial distribution into Solana's lending infrastructure.

OnRe launched a $200K incentive pool to offset borrowing costs for users who deposit ONyc as collateral to borrow USDG USDG, applicable on up to $20M in borrowing volume. Kamino's Mark Hull described the integration in straightforward terms: "ONyc is a great example of bringing DeFi utility to tokenize real-world investments."

For DeFi users, the most aggressive strategy involves looping: borrowing stablecoins against ONyc, redeploying, and repeating to compound the base yield. OnRe and MEXC both note that looping can push net yields above 20%, though that approach layers in liquidation risk if NAV moves.

Forward Industries and RockawayX Commit $30M to OnRe

The $150M market milestone follows the May Series A. Forward Industries Forward Industries, previously known as HSDT and now the largest Solana treasury company by holdings, and RockawayX co-led the $5M round. Forward has separately committed to deploy up to $25M into ONyc directly.

Ryan Navi, Forward's Chief Investment Officer, framed the commitment as a treasury diversification move: "Forward's investment in OnRe and ONyc marks a natural extension of our Solana treasury strategy — expanding beyond native staking yield into high-quality, real-world cash flows." RockawayX CEO Viktor Fischer described OnRe's trajectory: "Watching OnRe grow from zero into a flagship RWA on Solana shows how much demand there is for new onchain yield sources and how quickly the best products can scale."

Forward has previously described its ambition as building a Solana-native holding company modeled after Berkshire Hathaway. Generating USD-denominated, non-correlated yield income through an on-chain reinsurance protocol fits that stated direction.

On-Chain Reinsurance on Solana: Two Models Emerging

OnRe is not the only effort to bring reinsurance risk on-chain on Solana. Last week, Solana Compass covered SurancePlus, which is launching tokenized HCI Group reinsurance securities on Solana through Alphaledger, a distinct model that tokenizes specific program tranches as securities rather than running a licensed reinsurer with a yield-bearing token. The two approaches reflect different structural bets on how traditional reinsurance capital migrates on-chain.

OnRe ranked ninth globally among Solana RWA protocols by TVL as of January 2026, with $92M locked at that point and over 50% month-over-month growth at the time, according to RockawayX's research. The Kamino market crossing $150M represents a step change from those January figures.

The global P&C reinsurance market represents approximately $800B in premiums, per the Series A press release. On-chain participation in that market remains at a fraction of a percent, which is both the growth argument and the context for the current numbers.