In the search for stable and scalable performance in the chain, real world assets (RWAS) have become a cornerstone of digital asset strategies. The tokenized treasure bonds and private credit caused an out of the chain in the chain, delivering very necessary stability and emerging rapidly as one of the highest performance in Crypto.
The best categories of cryptography for market capitalization
https://www.coingcko.com/en/categories#Key-stats
However, much of this early activity of RWA has simply reflected traditional finances. The next evolution stage demands more. Capital moves quickly, and investors expect more from their assets. They are looking for returns that are not linked to cycles, access that does not depend on intermediaries and assets that are composed throughout the defi ecosystem.
An emerging example is the tokenized reinsurance, which carries some of the world’s largest and ilíchid industries to defi funds.
Reinsurance is a form of structured financing that helps insurers to administer large or unexpected losses. For most investors, it has been inaccessible, retained by obsolete infrastructure, opaque processes and high entry barriers. In spite of that, it is a global market of $ 784b+ that generates yields of both subscription profits and investment income, and capital is expected to grow at $ 2T during the next decade.
Let’s put it in perspective:
- Today, $ 770b in capital admits $ 460b in property premiums and victims.
- In 10 years, this capital base is expected to be more than double, reaching $ 2T and writing approximately $ 1.2t in premiums.
- That is $ 740b in additional premiums that are expected to flow through the market during the next decade.
The opportunity is becoming accessible through a new infrastructure built in the chain: rebuild access to reinsurance from scratch and open the door to a broader class of investors. I am a stable of performance such as its Ethena with a tokenized reinsurance risk group, and has a structured product that earns a subscription performance in all markets, captures collateral performance in bull cycles and connects to the rest of defi.
This change is happening along with a broader transformation in how capital moves in the market. While inherited reinsurance markets are based on private agreements and silence, web3 makes it easier to move faster capital, and with more transparency, so capital markets can flow more easily inside and outside such positions depending on the reinsurance yield. Composability opens the door to new integrations through defi, and together these characteristics allow a more accessible model.
The introduction of the tokenized reinsurance indicates how far the Rwas have progressed. The approach is changing to simply replicate traditional finances in the chain to establish new crypto-native forms of structured performance. In more general terms, the RWA are beginning to unlock financial structures that would be difficult, if not impossible, to implement in traditional markets. For capital allocators, reinsurance in the chain offers broader access, greater transparency and potentially more resistant yields.
As structured finances continue to cross the web3 infrastructure, the reinsurance offers a preview of where the next wave of innovation RWA is directed: the markets of the real world reinvented for speed, scale and open participation. The greatest opportunity lies in connecting decentralized and traditional systems in a scalable, transparent and lasting way.
