KR1 plc (LSE:KR1) has initiated a new revenue-generating strategy by deploying 40,000 Nexus Mutual (NXM) tokens—worth roughly £1.5 million—to provide underwriting capacity within Ethereum’s decentralized finance (DeFi) ecosystem.
The allocation accounts for around 36% of KR1’s total NXM holdings and represents the first implementation phase of its newly unveiled Financial Infrastructure Strategy. The tokens have been assigned to two distinct Nexus Mutual underwriting pools, with lock-up periods running between January 21 and April 22, 2027.
By contributing capital to these pools, KR1 will earn a proportion of insurance premiums generated, while assuming the risk of potential payouts should covered protocols face validated claims. According to the company, annualized returns on NXM underwriting over the past three months have ranged from approximately 2.81% to 13.31%.
KR1 indicated that it plans to deploy the majority of its remaining NXM holdings under the same framework, with further allocations anticipated during the first half of 2026.
Nexus Mutual—an organization KR1 backed at seed stage in 2017—has delivered more than $6 billion in cumulative crypto coverage since inception and has paid out over $18 million in legitimate claims.
“KR1 plc provides public market access to the infrastructure powering the global migration of assets onchain,” said Peter Holsgrove, Head of Investor Relations at KR1 plc. “The commencement of our Financial Infrastructure operations marks an important step in extending the productivity of our digital asset holdings.”
The company noted that it remains exposed to fluctuations in the market value of NXM during the lock-up period, meaning that changes in token prices could affect the fair value of the deployed capital irrespective of underwriting performance.
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