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Tabit Insurance, a Barbados-based company specializing in insurance solutions for the digital assets industry, has raised $40 million in a Bitcoin-backed insurance facility. This move marks an industry first, as the entire facility is capitalized entirely in Bitcoin, with both auditors and regulators able to verify the financing in real-time.
Tabit sees Bitcoin as an ideal asset for transparency, especially in the insurance sector. The company believes that the digital asset offers new and more transparent funding channels for companies. Even though the $40 million raised will be held in Bitcoin, the insurance policies and premiums will still be denominated in U.S. dollars, maintaining a traditional currency structure for policyholders.
William Shihara, the co-founder of Tabit, emphasized the company’s confidence in Bitcoin as a payment option, saying that this decision aligns with Tabit’s mission to combine traditional financial strength with assets like Bitcoin to stay responsive to market changes. Shihara expressed excitement about the opportunity to earn regulated dollar returns on Bitcoin, a non-traditional asset class, which gives the company greater flexibility.
Tabit, which is licensed by the Financial Services Commission of Barbados as a Class 2 insurer, operates as a segregated cell company. This setup allows the company to offer BTC-backed liability policies, along with dollar returns to Bitcoin holders. Tabit is working to introduce a new paradigm in the insurance sector by integrating digital assets like Bitcoin into traditional insurance models, offering a path to an untapped ecosystem for the industry.
CEO and co-founder Stephen Stonberg, who has a background with companies like Binance, Bittrex, and JP Morgan, is keen to use Bitcoin to revolutionize the insurance space by demonstrating how digital assets can serve as a new source of capital in the industry. The company aims to lead the sector into the future by capitalizing on the potential of Bitcoin-backed insurance solutions.
