Tabit Insurance, a Barbados-regulated insurance company, has raised $40 million in bitcoin to back its traditional insurance business, offering a new approach to insuring cryptocurrency holdings. Individuals can earn passive income by holding their bitcoin in a secure and regulated environment.
Tabit Insurance Raises $40M in Bitcoin to Back Barbados-Licensed Insurance Firm
Tabit Insurance, a Barbados-regulated insurance company established by former executives from ‘Bittrex’ , has raised a $40 million reserve composed entirely of bitcoin (BTC) with which to write traditional insurance and reinsurance business.
According to its website, Tabit has partnered with leading insurance companies to offer a wide range of products, including life, health, and auto insurance.
As of [latest update], Tabit has reportedly processed over $[amount] in claims, demonstrating its growing presence in the market.
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A New Approach to Insuring Cryptocurrency Holdings
The crossover between crypto and insurance usually involves shoehorning existing risk categories for loss and theft into covering hot and cold versions of digital assets custody. Tabit’s approach is interesting because it explores ways firms and individuals can capitalize on their bitcoin holdings without getting involved in trading or incurring significant counterparty risk.
How it Works
Tabit co-founder and CEO Stephen Stonberg said bitcoin holders are invited to contribute assets to the firm’s system of segregated reserve cells, which is managed using non-custodial tech from ‘Fireblocks’ , to earn yields of around 10%. This allows individuals to earn passive income by holding their bitcoin in a secure and regulated environment.
Stonberg noted that this approach is similar to how accredited investors deploy assets into insurance syndicates at the Lloyd’s of London insurance market. ‘For a technology like crypto, you may need a new underwriter, but the way the insurance is done is fundamentally the same as before,’ he said in an interview. ‘We are holding our regulatory capital in bitcoin, and I think bringing in a new capital source to the insurance industry and innovating with the balance sheet is an opportunity that other people weren’t really looking at.‘
A Regulated Risk Carrier
Tabit Insurance claims to be the first regulated risk carrier to rely on bitcoin-only reserves to write traditional policies priced in U.S. dollars. The firm has a class 2 insurance license from the Barbados Financial Services Commission, which provides an additional layer of regulatory oversight and protection for policyholders.
By providing a secure and regulated environment for individuals to hold their cryptocurrency holdings, Tabit Insurance is addressing a key pain point for many investors who are interested in earning passive income but lack access to traditional financial products.
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