Tabit Insurance SCC has officially rolled out a $40 million insurance facility, funded entirely in Bitcoin, as revealed in a press release shared with Bitcoin Magazine. This move represents a groundbreaking shift in the property and casualty (P&C) insurance sector—it’s the first time a company has held all of its regulatory reserves in Bitcoin while still using U.S. dollars to denominate its policies and premiums. Tabit highlighted the advantage of this strategy, which allows regulators and auditors to verify reserves in real-time.
The company sees BTC as capital as a way to offer new capacity to the insurance industry. Operating as a segregated cell company, Tabit can form additional cells to deploy capital in this sector, enabling BTC holders to earn returns in USD via their own segregated cells.
William Shihara, who co-founded Tabit, expressed, “Our capital allocation strategy reflects our strong belief in providing steady support to our partners. By blending the strength of a traditional balance sheet with innovative assets like Bitcoin, we can stay agile in market changes and better serve the insurance community. This solution offers a regulated dollar return on Bitcoin, an asset class we’re excited to utilize.”
Furthermore, the company stressed that its reserves can be verified through a blockchain-based proof-of-reserves model. This approach offers real-time transparency, surpassing the usual quarterly disclosures typical of the insurance industry.
Stephen Stonberg, another co-founder and CEO of Tabit, mentioned, “We recognized a chance to enhance transparency in a traditionally stagnant industry. We’re eager to propel the insurance sector forward by showcasing what’s possible when an insurer taps into a new, largely untouched source of insurance capital: digital assets.”
Based in Bridgetown, Barbados, Tabit benefits from the island’s well-regulated captive insurance market, ranking among the top ten globally. They cite Barbados’ regulatory environment as a framework that supports their operations.
Looking ahead, Tabit intends to collaborate with insurance carriers, brokers, and organizations in search of extra capacity or alternative risk financing options. They also plan to partner with significant digital asset holders wanting to earn USD income while maintaining their BTC positions. For more details on Tabit Insurance SCC, visit their website.
