Barbados-based insurer Tabit has successfully secured $40 million in Bitcoin to enhance its insurance facility, a strategic move the company states will strengthen its balance sheet and enable the insurance sector to leverage digital assets.
According to a March 24 announcement, Tabit’s Bitcoin (BTC) regulatory capital will support traditional insurance policies, all of which are issued in US dollars.
Tabit positions itself as the first property and casualty insurer to hold its entire regulatory reserve in BTC. The company was established by former Bittrex executives, from a cryptocurrency exchange based in Liechtenstein that closed its doors in 2023.
“This approach provides a regulated dollar return, which we are thrilled to gain from an alternative asset class like Bitcoin,” remarked William Shihara, co-founder of Tabit.
Stephen Stonberg, co-founder and CEO, mentioned that Bitcoin opens up a significantly untapped source of insurance capital: digital assets.
“Having access to Bitcoin allows Tabit to tap into a completely new capital pool,” a company spokesperson remarked. “BTC has limited regulated avenues where a holder can earn returns, but insurance is one of those domains.”
Launching in January as a Bitcoin-backed insurer, Tabit received a Class 2 license from the Financial Services Commission of Barbados.
Blockchain and the Insurance Industry
To date, much of the conversation surrounding cryptocurrency and insurance has focused on aiding users in reclaiming financial losses and employing blockchain technology to enhance industry transparency. A 2023 report by Boston Consulting Group suggests the blockchain-insurance connection could evolve into a $37 billion opportunity by the year 2030.
In the background, an emerging industry is forming to connect insurance brokers and underwriters with digital asset capital providers.
One notable player is Nayms, an on-chain insurance marketplace facilitating connections between capital providers and brokers through segregated accounts.
Another key participant, Ensuro, curates insurance market opportunities and delivers underwriting capacity using stablecoins. Their website indicates that Ensuro currently manages over 12,000 active policies, boasting APYs of up to 22%.