Tabit Insurance Raises $40 Million Bitcoin-Funded Insurance Facility
Tabit Insurance SCC has announced the successful capitalization of a $40 million insurance facility, entirely funded in Bitcoin, according to a press release. This marks a significant milestone, establishing Tabit as the first property and casualty (P&C) insurer to hold its entire regulatory reserves in BTC, while still maintaining insurance policies and premiums denominated in U.S. dollars.
The company highlighted that its funding strategy offers enhanced transparency, allowing regulators and auditors to verify reserves in real-time. Tabit’s use of BTC as capital aims to provide an innovative alternative source of capacity for the insurance industry. Operating as a segregated cell company, Tabit can create additional cells to deploy capital within the insurance sector. This structure also allows BTC holders to earn USD returns through their own segregated cells.
William Shihara, co-founder of Tabit, expressed confidence in the company’s approach, stating, “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’re able to stay responsive to market shifts and better serve the insurance community. This solution offers a regulated dollar return which we’re excited to earn on an alternative asset class such as bitcoin.”
The company further emphasized the verifiable nature of its reserves, with real-time transparency ensured through a proof-of-reserves model on the blockchain. This surpasses the typical quarterly disclosure practices within the insurance industry.
Stephen Stonberg, co-founder and CEO, commented on the opportunity for innovation, noting, “At Tabit, we saw a clear opportunity to enhance transparency within an industry that has been sorely lacking in innovation. We’re 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.”
Tabit is headquartered in Bridgetown, Barbados, a jurisdiction known for its well-established captive insurance market and is ranked as a top-ten global captive jurisdiction. The company’s operations are overseen under the regulatory framework of Barbados.
Tabit plans to collaborate with various entities, including insurance carriers, brokers, and organizations looking for additional capacity or alternative risk financing solutions. They also intend to engage with large-scale digital asset holders who wish to generate USD income while maintaining their BTC exposure.
Additional details regarding Tabit Insurance SCC can be found on their website.
