Tabit secures $40M in Bitcoin for insurance reserves

Tabit, a Barbados-based insurance company, has raised $40 million in Bitcoin (CRYPTO:BTC) to support its insurance facility, according to a March 24 announcement.

The company stated that its Bitcoin reserves would serve as regulatory capital backing traditional insurance policies, which remain denominated in U.S. dollars.

Tabit claims to be the first property and casualty insurer to hold its entire regulatory reserve in Bitcoin.

“This solution offers a regulated dollar return, which we’re excited to earn on an alternative asset class such as Bitcoin,” said Tabit co-founder William Shihara.

Co-founder and CEO Stephen Stonberg highlighted Bitcoin’s role in expanding insurance capital.

“Bitcoin means Tabit has access to a whole new pool of capital. BTC has limited regulated use cases where a hodler can earn a return, but insurance is one of them,” a company spokesperson said. 

Tabit was launched in January and holds a Class 2 license from the Barbados Financial Services Commission.

The company was founded by former executives of Bittrex, a cryptocurrency exchange that ceased operations in 2023.

The use of blockchain in insurance has been gaining attention, particularly in enhancing transparency and streamlining claims processing.

A 2023 report by Boston Consulting Group estimated that blockchain technology could create a $37 billion opportunity in the insurance sector by 2030.

Other companies have also explored digital assets in insurance.

Nayms, an on-chain insurance marketplace, connects capital providers with brokers, while Ensuro offers underwriting capacity using stablecoins.

According to Ensuro’s website, it currently supports over 12,000 active policies.

Tabit’s approach reflects a growing trend of integrating Bitcoin and blockchain technology into traditional financial sectors.

At the time of reporting, the Bitcoin (BTC) price was $86,668.77.