Tabit offers USD insurance policies backed by Bitcoin regulatory capital

Barbados-based insurer Tabit has raised $40 million in Bitcoin for its insurance facility, in a move the company said would bolster its balance sheet and allow the insurance sector to capitalize on digital assets. Tabit’s Bitcoin regulatory capital will be used to back traditional insurance policies, which are all denominated in US dollars, the company disclosed in a March 24 announcement. Tabit claims to be the first property and casualty insurer to hold its entire regulatory reserve in BTC. The company was founded by former executives of Bittrex, a Liechtenstein-based cryptocurrency exchange that was shuttered in 2023.“This solution offers a regulated dollar return, which we’re excited to earn on an alternative asset class such as Bitcoin,” said William Shihara, Tabit’s co-founder. Tabit co-founder and CEO Stephen Stonberg said Bitcoin allows the insurance sector to “Access a largely new and untapped source of insurance capital: digital assets.” “Bitcoin means Tabit has access to a whole new pool of capital,” a company spokesperson told Cointelegraph. “BTC has limited regulated use cases where a hodler can earn a return, but insurance is one of them.”Tabit launched in January as a Bitcoin-backed insurer, receiving a Class 2 license from Barbados’ Financial Services Commission.