Tabit Introduces USD Insurance Policies Backed by Bitcoin Regulatory Capital
Barbados-based insurer Tabit has successfully raised $40 million in Bitcoin (BTC) to support its insurance facility, marking a significant step toward integrating digital assets into traditional insurance markets. The company announced this development on March 24, highlighting its intention to leverage Bitcoin as regulatory capital backing USD-denominated insurance policies.
Key Highlights
- Tabit raised $40 million in Bitcoin to bolster its insurance balance sheet.
- The funds will serve as regulatory capital backing traditional USD insurance policies.
- Tabit claims to be the first property and casualty insurer holding its entire regulatory reserve in Bitcoin.
- The company was founded by former executives of the now-closed cryptocurrency exchange Bittrex.
- Tabit operates under a Class 2 license from Barbados’ Financial Services Commission.
William Shihara, co-founder of Tabit, emphasized the innovative nature of this approach, stating, “This solution offers a regulated dollar return, which we’re excited to earn on an alternative asset class such as Bitcoin.”
Stephen Stonberg, Tabit’s CEO and co-founder, added that Bitcoin enables the insurance sector to “access a largely new and untapped source of insurance capital: digital assets.”
Blockchain and Insurance Industry Growth
The intersection of blockchain technology and the insurance industry is rapidly expanding. According to a 2023 report by Boston Consulting Group, blockchain-related insurance opportunities could reach $37 billion by 2030. Companies like Nayms and Ensuro are already facilitating connections between insurance brokers, underwriters, and digital asset capital providers, further demonstrating the growing synergy between blockchain and insurance.
Tabit’s innovative use of Bitcoin as regulatory capital highlights the evolving role of digital assets in traditional financial sectors, potentially paving the way for broader adoption within the insurance industry.
