Barbados-based Tabit Insurance has secured a $40m insurance facility, capitalised entirely in bitcoin.
This enables real-time verification of funds by regulators and auditors, the company press release said, with the capitalisation of the facility in bitcoin touted as an “industry first”.
Tabit also said that all insurance policies and premiums will remain denominated in US dollars, though the capital is held in bitcoin.
Commenting on the benefits of the development, Tabit co-founder William Shihara said: “Our approach to capital allocation underscores our confidence in providing a steady hand to our partners. By combining traditional balance sheet strength with carefully chosen assets like bitcoin, we are able to stay responsive to market shifts and better serve the insurance community. This solution offers a regulated dollar return which we are excited to earn on an alternative asset class such as bitcoin.”
Tabit co-founder and CEO Stephen Stonberg stated: “At Tabit, we saw a clear opportunity to enhance transparency within an industry that has been sorely lacking in innovation. We are eager to move the insurance sector into the future by demonstrating what is possible by allowing an insurer to access a largely new and untapped source of insurance capital: digital assets.”
Structured as a segregated cell company, Tabit provides US dollar returns to bitcoin investors.
It is licensed by the Barbados Financial Services Commission as a Class 2 insurer.
The company offers an array of coverage options in property and casualty, retrocession and specialty reinsurance categories.
“Tabit Insurance obtains $40m bitcoin-funded facility ” was originally created and published by Life Insurance International, a GlobalData owned brand.
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