Barbados-based Tabit Insurance has made industry history by securing a $40 million insurance facility fully capitalized in Bitcoin, marking a groundbreaking shift in how insurance firms approach digital assets and capital management.

The First-Ever Bitcoin-Capitalized Insurance Facility

A bold move that sets a precedent for the insurance sector

Tabit Insurance announced that it has raised $40 million in a Bitcoin-backed facility. This move, described as an “industry first,” allows regulators and auditors to verify the capital in real-time, thanks to Bitcoin’s transparent ledger.

The entire sum will be held in BTC, though insurance premiums and payouts will remain in U.S. dollars. The firm believes this hybrid structure offers the best of both traditional and digital asset worlds, providing regulated USD returns while gaining exposure to Bitcoin.

Leadership Commentary: Innovation and Confidence

Executives highlight the benefits of crypto-driven insurance models

Co-founder William Shihara emphasized that Bitcoin gives Tabit the agility to respond to market shifts. He noted that supporting this effort entirely in BTC demonstrates Tabit’s trust in the asset and their commitment to innovation in the insurance sector.

By mixing traditional balance sheet strength with digital asset exposure, Tabit aims to serve a growing ecosystem of companies seeking alternative capital structures. Shihara added that BTC offers not only transparency but the opportunity to generate dollar-based yields from crypto.

Why Bitcoin?

Unlocking untapped capital sources in insurance

Bitcoin offers a unique value proposition for insurers: real-time verification, decentralization, and global liquidity. Tabit’s decision to use BTC as the backbone for its new facility opens doors to capital pools previously inaccessible to most traditional insurers.

Stephen Stonberg, Tabit CEO and a former executive at Binance, Bittrex, JP Morgan, and Deutsche Bank, noted that the digital asset ecosystem remains largely untapped in the insurance industry. He believes Tabit’s model could catalyze a wave of innovation across global insurance platforms.

Regulation and Structure

Licensed framework supports crypto integration

Tabit operates out of Barbados under a Class 2 insurance license from the country’s Financial Services Commission. The company also functions as a segregated cell company, a structure that allows for ring-fencing of liabilities and capital, enabling tailored risk solutions for clients.

Despite backing the facility in BTC, Tabit remains focused on USD-denominated returns, helping bridge the gap between the crypto-native and institutional finance worlds.

Implications for Crypto and Insurance Sectors

A future model for hybrid capital management

This move by Tabit illustrates the growing institutional confidence in Bitcoin, not just as a speculative asset but as a capital base. As the insurance industry grapples with tightening margins and limited return opportunities, BTC could represent a new class of balance sheet assets.

For digital asset holders, Tabit also offers a novel proposition: dollar-denominated insurance products backed by BTC, providing financial protection without exiting the crypto ecosystem.