Tabit Insurance Announces $40 Million Bitcoin-Centric Funding

Tabit Insurance has announced the capitalization of its $40 million insurance facility.

The fundraise, announced Monday (March 24), was provided entirely in bitcoin, which Tabit says is an industry first.

“The company’s regulators and auditors can verify the funding in real time, marking a distinctive and novel approach to transparency for the insurance industry,” Tabit said in a news release.

With the market currently “priced at attractive levels” and alternative capital sources increasingly serving as a source of capacity, Tabit says its use of bitcoin “provides an innovative source of capital” for the insurance sector.

The release added that while the capital is held in bitcoin, the company said its insurance policies and premiums are all denominated in U.S. dollars.

“Our approach to capital allocation underscores our confidence in providing a steady hand to our partners,” said William Shihara, co-founder of Tabit. “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.”

According to the release, the $40 million in capital is verifiable on the blockchain “in the manner of proof of reserves,” offering greater transparency than would be found with quarterly disclosures and allowing for constant oversight by regulators in Barbados, where Tabit is based.

In other digital asset news, PYMNTS wrote last week about the risks businesses face by turning to stablecoins. As that report said, the lack of standardized disclosures around reserve compositions can mask the true backing of stablecoins. Reserves comprised of less liquid or higher-risk assets may not be able to deliver the stability users were expecting, especially during periods of market volatility.​

“The short answer is … Stablecoin deposits aren’t protected by any government-backed institutions. Some coins, like USDC, claim to be backed 1:1 with reserves like cash or short-term treasuries, but the reality is much more complex. Some stablecoins also include commercial paper or other financial instruments in their reserves,” Lissele Pratt, co-founder at Capitalixe, said in an interview with PYMNTS.

“The risk of this is that it falls on the issuer. If something goes wrong, like with TerraUSD for instance, users are left holding the bag, and regulators usually step in too late to prevent significant losses. This is why trust in the issuer is crucial, but as recent events have shown, trust can be a fragile thing,” Pratt added.