Tabit Insurance

Tabit Insurance, a Barbados-regulated company founded by former Bittrex executives, has raised a $40 million reserve entirely in Bitcoin (BTC) to provide traditional insurance and reinsurance services.

Established in January this year, Tabit aims to offer Bitcoin-backed liability policies for company directors and officers (D&O) and claims to be the first regulated insurer relying solely on Bitcoin reserves to underwrite policies priced in U.S. dollars. The firm holds a Class 2 insurance license from the Barbados Financial Services Commission.

Typically, the crypto-insurance crossover involves adapting existing risk categories to cover both hot and cold cryptocurrency asset custody. Tabit’s unique approach enables firms and individuals to leverage their Bitcoin assets for yields without engaging in trading or incurring significant counterparty risks.

Co-founder and CEO Stephen Stonberg invites Bitcoin holders to contribute to segregated reserve cells, managed via non-custodial technology from Fireblocks, allowing them to earn approximately 10% yields. This model is comparable to how accredited investors, or “Names,” invest in insurance syndicates at Lloyd’s of London.

Stonberg remarked, “For a technology like crypto, you may need a new underwriter, but the way insurance operates is fundamentally the same as before. We are holding our regulatory capital in Bitcoin, presenting opportunities for innovation in the insurance sector.”