Tenant wants to use Rhino to cover security deposit

[Eric W.]

I'm in NYC- tenant says its his choice to use Rhino as a security deposit replacement.  He has already used 2 months security for rent and Im against using Rhino, would rather have a cash security deposit.  Im having a hard time seeing what my other options are as the power is with the tenant right now and hes rather stubborn.  Id rather take half the security deposit rather than use some crummy third party insurance.  Anyone have suggestions?