Forward and RockawayX lead $5 million SOL-based reinsurance deal

Forward Industries and crypto investment firm RockawayX have made a strategic investment in OnRe, a startup developing reinsurance infrastructure on the Solana blockchain. According to statements from the companies, this move aims to bring traditional risk transfer markets into a decentralized environment. Forward and RockawayX jointly led the $5 million Series A funding round. Additionally, Forward is planning to allocate up to $25 million in extra capital to OnRe’s yield-generating token built on Solana.

Institutional push towards onchain reinsurance

OnRe announced that the funds will directly support the platform’s growth and drive more institutional investors into the blockchain-based reinsurance ecosystem. Reinsurance, wherein insurance companies transfer their risk to third parties to reduce balance sheet burdens, is a vital financial instrument. The OnRe team aims to make capital flows and collateral management in reinsurance more efficient through tokenization and smart contracts powered by blockchain technology.

This initiative stands as one of the leading examples of integrating real-world financial services, like insurance and reinsurance, into a decentralized blockchain setting. However, adoption of such applications is still in its early stages.

Forward Industries holds more than 7.01 million $SOL on its public balance sheet, making it one of the largest institutional holders of Solana. Following the investment announcement, the company’s US Nasdaq-listed shares rose by approximately 5.8% on Tuesday, although much of this gain faded in after-hours trading. According to CryptoAppsy data, the price of $SOL hovered around $86.61 during the period in question, reflecting an increase of roughly 2.7%.

Blockchain’s role in transforming reinsurance

The global reinsurance industry is valued at over $600 billion, with total premiums approaching $2 trillion. Growing demand for risk transfer is fueling the sector’s expansion. Blockchain technology now enables real-time tracking, risk assessment, and claims management—traditional reinsurance processes that were once mainly manual—through shared digital ledgers that automate these steps.

Beyond OnRe, a range of blockchain-based reinsurance projects are emerging. “Re,” a decentralized protocol, intends to connect insurance risks collateralized by institutional capital with investors, offering tokenized yield opportunities.

Ongoing experimentation in the sector

Other projects providing insurance and reinsurance for smart contracts and decentralized finance (DeFi) applications are also under development. The majority of the sector remains at an experimental stage, with most platforms still testing their offerings.

Blockchain applications aren’t limited to reinsurance; other parts of the insurance value chain are being explored as well. For example, broker Aon has piloted using stablecoins for premium payments. Aon’s Head of Financial Services, Tim Fletcher, has suggested a growing likelihood for tokenized assets to become further integrated within the financial industry.

Tim Fletcher noted that tokenized assets are steadily becoming part of traditional financial systems, which could pave the way for lasting digital solutions in the insurance sector.