A bitcoin-focused life insurance firm secures $40M in funding to expand globally, offering innovative solutions to shield policyholders from inflation and currency risk.
A Bitcoin-focused startup offering life insurance and annuities denominated in bitcoin (BTC) has secured a significant investment to accelerate its global rollout.
Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without the need for intermediaries.
Created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto, bitcoin uses cryptography to secure and verify transactions.
The total supply of bitcoin is capped at 21 million, with new coins created through a process called mining.
Bitcoin's value has been subject to significant fluctuations, making it a high-risk investment for some users.
The firm, Meanwhile, raised $40 million in series A funding led by venture capital firms Framework and Fulgur Ventures. Early investor Wences Casares also participated in the round. The investment follows an earlier, $20 million round from investors including OpenAI CEO Sam Altman, alongside Google’s AI-focused fund Gradient Ventures.
Shielding Policyholders from Inflation Risk
Meanwhile‘s bitcoin-denominated life insurance and annuity products aim to shield policyholders from inflation and currency risk. Traditional life insurance pays out in fiat currencies, but Meanwhile flips this model by keeping premiums and benefits in bitcoin. This approach can help preserve purchasing power for future payouts in countries where local currencies lose value.
However, policyholders also take on the price volatility of bitcoin. The firm’s products are designed to address these risks, providing a hedge against inflation and currency devaluation.
Inflation risk refers to the possibility of a sustained increase in prices for goods and services.
It can erode purchasing power, reduce the value of money, and impact economic growth.
Central banks often aim to keep inflation within a target range, typically around 2%.
Excessive inflation can lead to higher interest rates, reduced consumer spending, and decreased business investment.
Factors contributing to inflation risk include monetary policy, supply chain disruptions, and changes in demand.
Bitcoin-denominated life insurance is a type of policy that uses Bitcoin as the basis for premium payments and death benefit payouts.
This innovative approach allows individuals to hedge against inflation, currency fluctuations, and other economic risks.
In 2020, a German insurer became the first company to offer such a product, leveraging the stability and security of blockchain technology.
Bitcoin-denominated life insurance policies are still relatively rare but gaining popularity as investors seek alternative investment vehicles.
Global Expansion Plans
The investment will be used to accelerate the firm’s global rollout, targeting regions where inflation and currency instability are everyday concerns. Meanwhile plans to enter new markets, taking advantage of its digital life insurer license in Bermuda, which was secured last year.
‘This round gives us significant capital to power our journey of building the world’s largest long-term insurance and savings company,’ said co-founder and CEO Zachary Townsend. The firm aims to become a leading player in the global insurance market, offering innovative solutions that cater to the needs of policyholders in emerging markets.
