Nayms, recognized as the foremost crypto-native reinsurance platform, has announced the launch of the NAYM governance token, which is now available for public acquisition. The NAYM token funds the Nayms Liquidity Facility (NLF), which engages with insurance pools and collaborates with market makers to generate liquidity for capital providers and rewards for token holders.
By contributing to the NLF, token holders benefit from an enhanced boost factor on any NAYM tokens placed in the governance pool. As a governance token, stakers can participate actively in the Nayms marketplace, influencing decisions about the NLF’s investment allocations and the desired proportions of NAYM relative to other NLF assets. In exchange, stakers are rewarded based on the NLF’s success, acknowledging their vital contributions to its governance.
With the transformation of the insurance sector, tokenization provides a remarkable chance for institutional investors to enhance their asset portfolios and tap into the expansion of established private market asset classes. Nayms presents avenues for investment in reinsurance for property and casualty (P&C) risks, encompassing areas such as cyber threats, errors and omissions, directors and officers insurance, crimes, and various industry loss warranty products. Typically, this market has been the bastion of pension funds, private equity firms, and other significant institutional investors. Nayms democratizes this access for all qualified investors through the method of tokenization, enabling them to utilize their wallets for entry.
“The NAYM token enables anyone to become part of our global insurance ecosystem and engage in one of the largest industries globally, which has, until now, remained largely inaccessible to major institutional investors,” said Ted Georgas, Co-Founder and CTO of Nayms. “The NAYM token introduces a fresh paradigm for industry cooperation and governance through active involvement and rewards for stakeholders, while simultaneously unveiling new capital prospects in previously overlooked insurance markets.”
Reinsurance is a critical process wherein insurance firms allocate portions of their risk to other firms known as reinsurers. This allows insurers to better handle their risk exposure, enhance their financial stability, and optimize capital usage. Reinsurance costs typically represent around 5%-10% of the premiums collected. According to PwC data, blockchain solutions have the potential to cut costs by 15% to 25%, resulting in an industry-wide saving of $5-10 billion.
In the aftermath of one of the most intense hurricane seasons in recent history, the costs associated with reinsurance are likely to escalate further, heightening the necessity for innovative solutions within the sector. Tragically, both Hurricane Helene and Hurricane Milton have been projected to result in losses of around $50 billion each. Effective and decisive reinsurance in such scenarios allows insurance providers to rapidly and thoroughly compensate victims without jeopardizing their own financial stability. Earlier in the year, Nayms introduced an industry loss warranty (ILW) contract on Coinbase Ethereum L2 Base, facilitating a Bermuda-regulated segregated account structure that reinsures against specific weather-related catastrophic occurrences in Florida.
Nayms is committed to fostering a fair and transparent financial environment while proactively influencing the evolution of on-chain finance. It has been instrumental in revolutionizing the tokenized asset landscape by bridging traditional insurance markets, insurtech, and blockchain innovation, unlocking access to over $2 trillion in alternative capital through the tokenization of real-world insurance programs. By permitting both stablecoins and fiat as collateral, Nayms expands access to tokenized insurance, promoting both diversification and transparency within the financial framework, making it a trailblazer and one of the few that are fully regulated in both digital assets (DABA Class F) and insurance (IIGB) under the supervision of the Bermuda Monetary Authority (BMA).
For additional information on the NAYM token sale, please visit https://www.naymtoken.com.
About Nayms
Nayms stands at the forefront of the crypto-native (re)insurance market. Registered as a segregated accounts company in Bermuda under the Segregated Accounts Companies Act of 2000, it holds a Class F license as per the Digital Asset Business Act of 2018 and a Class IIGB license according to the Insurance Act of 1978. Nayms effectively connects alternative capital to a diversity of property and casualty risks. The platform provides the necessary technical and legal framework for relevant parties—including insured, insurers, brokers, and underwriters—to collaborate on capitalizing and transferring risk on-chain. Built on Ethereum and Base, Nayms utilizes smart contracts to facilitate on-chain insurance placement and crypto-native transactions for collateral, commissions, premiums, and claims.
About NAYM
NAYM is the governance token associated with the Nayms marketplace, intended to finance the Nayms Liquidity Facility (NLF). The NLF acts as a third-party capital source, very carefully supplying funds to insurance programs underwritten by Nayms. Through these allocations, the NLF aims to earn returns that are redistributed, creating rewards for holders of NAYM. Those with NAYM can play an active role in governance through proposals, discussions, staking, and voting. Participating actively in governance not only enhances the marketplace’s performance but also enables participants to reap rewards from the NAYM governance pool.
NAYM tokens are issued by NAYM Systems Limited, a British Virgin Islands company with business company number 2146249, registered at Rodus Building, P.O. Box 3093, Road Town, Tortola, VG1110, British Virgin Islands.
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Disclaimer: This press release is for informational purposes only and does not constitute investment advice or an invitation to invest.