Barbados-based insurer Tabit raises $40 million in Bitcoin for insurance facility

Tabit, an insurer based in Barbados, has successfully raised $40 million in Bitcoin to strengthen its balance sheet and enable the insurance industry to benefit from digital assets. The company announced on March 24 that its Bitcoin regulatory capital will be used to support traditional insurance policies denominated in US dollars. Tabit is proud to be the first property and casualty insurer to hold its entire regulatory reserve in BTC, founded by former Bittrex executives. Co-founder William Shihara expressed excitement about earning a regulated dollar return on Bitcoin, while CEO Stephen Stonberg highlighted the new source of insurance capital that Bitcoin provides. Tabit, a Bitcoin-backed insurer, obtained a Class 2 license from Barbados’ Financial Services Commission in January. The discussion surrounding cryptocurrency and insurance has mostly focused on aiding users in recovering financial losses and utilizing blockchain technology to enhance transparency in the industry. According to a report by Boston Consulting Group, the intersection of blockchain and insurance could present a $37 billion opportunity by 2030. There is a growing industry dedicated to connecting insurance brokers and underwriters with digital asset capital providers, with companies like Nayms and Ensuro facilitating these connections. Ensuro, for example, offers over 12,000 active policies with APYs reaching up to 22%.