40 Million Dollar Bitcoin Reserve from Former Cryptocurrency Exchange Executives! - Coin Bulletin

Tabit Insurance, an insurance company founded by former Bittrex executives, announced that it has raised 40 million dollars in reserves entirely with Bitcoin (BTC) for traditional insurance business.

Tabit Insurance, which started its operations in January of this year and plans to offer Bitcoin-backed liability insurance (D&O) for company executives, introduces itself as the first regulated insurance company aiming to write traditional policies backed only by reserves of Bitcoin. The company holds a class 2 insurance license from the Barbados Financial Services Committee. The transition between insurance and reinsurance offers an innovative approach to how firms and individuals holding Bitcoin can evaluate their assets, unlike the adaptation of traditional risk categories such as cryptocurrency asset custody to digital assets.

Tabit’s co-founder and CEO Stephen Stonberg stated that Bitcoin holders want to add their assets to the insured reserve cell system managed by the non-custodial technology provided by Fireblocks and achieve an approximately 10% return. This is similar to a system where accredited investors in the Lloyd’s of London insurance market, known as “Names”, invest their assets into insurance syndicates.

Tabit has developed a new type of insurance for crypto technology, but actually argues that the fundamentals of the insurance sector are still the same. Stonberg stated, “We are holding our regulatory capital in Bitcoin and I believe that bringing a new source of capital to the insurance industry, innovating the balance sheet, is an opportunity that no one else is looking at.”