The Resilience Foundation Just Deployed $100M Into Cover Re SPC

On April 2, 2026, the Resilience Foundation transferred $100M into Cover Re SPC, Re’s supporting reinsurance company, via a surplus note. This is the first capital rotation of its kind at this scale in decentralized reinsurance, and it’s worth understanding what it means and why it matters.

What Happened
The capital moved through several steps: from the Resilience Foundation to a Re-controlled wallet and onto Cover Re SPC’s balance sheet as regulatory capital. The funds are now fully reflected as offchain capital backing the reinsurer.

A surplus note is the financial instrument that governs this transfer. It’s a formal agreement between Cover Re SPC and the Resilience Foundation that records the capital,and sets the terms: Cover Re SPC generates reinsurance economics and flows some part of these Foundation. Those economics arewhat covers the yield to reUSD and reUSDe token holders.

Why this is happening
Re earns yield by deploying capital into regulated reinsurance businesses. Cover Re SPC needs this capital on its balance sheet to write new reinsurance treaties and generate economics that flow back to token holders.The surplus note is the legal bridge that makes this possible.

What you should know about the capital

The capital remains in accounts controlled by the reinsurance company. While the funds have been offramped to US Dollarshey sit in trust accounts managed by Cover Re SPC.

Balances are verified by third parties every day. This is not a trust-me arrangement. Independent third-party verification of the capital happens daily.

The capital’s risk seniority has not changed. Although the capital is deployed to fulfill the regulatory collateral requirements for each reinsurance contract, it still remains at risk in order of its seniority. Re’s equity capital is at risk first, before any reUSDe capital is used to pay claims, and reUSDe capital is at risk before any reUSD capital. Moving the capital offchain does not change its risk profile, as this is structurally defined in the surplus notes and legal agreements between all involved parties. It’s posted as collateral to maintain compliance for the contract, not exposed to additional risk. And the deeper the pool of Re capital becomes, the more risk-remote both reUSDe and reUSD become. The likelihood of reUSDe or reUSD capital ever being used to cover losses only arises in extreme insurance loss scenarios, the kind that are historically rare across the reinsurance industry.

What this means for depositors
Your liquidity and ability to redeem are not affected. The surplus note is how Re generates economics that flows back to tokenholders. Re will continue to maintain at least 50% of all outstanding reUSD token backing available for instant redemptions while still maintaining the same senior tranche risk profile for the entity of capital backing reUSD.

Our redemption holdback process ensures consistent liquidity for depositors. Redemptions are supported by multiple sources: a 50% liquidity holdback, coupon payments from the reinsurer to the protocol, an ~18-month principal repayment schedule from the reinsurer, Re capital, and optional discretionary payments from the reinsurer as needed.

This is how a real business functions to provide real yield. Unlike DeFi-native yield strategies, Re’s returns come from actual insurance premiums earned by underwriting real-world risk. The capital has to be deployed into the reinsurer for that to happen.

The reinsurance company is now larger, able to write more policies, earn more premiums, and generate more yield. This is business as usual, and you should expect more transfers like this going forward, because transfers mean the business is growing.

About the Resilience Foundation
The Resilience Foundation is the stewarding entity of the Re ecosystem, overseeing the governance, development, and long-term integrity of the Re Protocol. The Foundation coordinates strategic direction and ecosystem growth while key operational and regulated activities are executed through independent affiliated entities, including Cover Re.

This structure is designed to balance decentralized participation with institutional-grade oversight, supporting the protocol’s mission to build more transparent, efficient, and globally accessible reinsurance capital markets.

About Cover Re SPC
Cover Re is a Cayman-domiciled reinsurer delivering rated-quality capacity through a fully collateralized balance sheet. It secures reinsurance liabilities with 100% cash and investment-grade assets held in segregated Regulation 114 trusts.

Led by underwriters with experience from top-tier global (re)insurers, it is structured as a long term partner focusing on building profitable relationships with like minded insurance companies and MGAs.

Disclaimers
reUSD & reUSDe are available only to non-U.S. persons in specific permitted jurisdictions through Resilience Foundation Cayman LLC (“Resilience Foundation”), an Exempted Limited Guarantee Foundation Company incorporated in the Cayman Islands with Limited Liability with registered number IC-414560. Neither the Resilience Foundation nor its affiliates provide insurance or reinsurance services, act as an insurance broker or agent, and or hold a license to conduct insurance business. All regulated reinsurance activities, including the underwriting of risks and the issuance of reinsurance contracts, are conducted exclusively by Cover Reinsurance SPC Ltd. (“Cover Re SPC”). Cover Re SPC is a Class B(iii) licensed exempted segregated portfolio company incorporated in the Cayman Islands.

Not guaranteed. Purchasing reUSD and reUSDe tokens involve significant risk, including total loss of principal and smart contract vulnerabilities. Past performance is not a reliable indicator of future results.

No Investment or Financial Advice: All content, information, and materials provided on this blog are provided for informational and educational purposes only.

Terms apply. See the Re website for additional details including our Terms of Service and Disclaimers.”

After the “Legal Disclosures” page is on re.xyz keep the same disclosures but replace the “Terms apply” with the following:

Terms apply. See the Re website for additional details including our Legal Disclosures, Terms of Service, and Disclaimers.