Tabit Insurance, an insurance company regulated by Barbados established by former executives of the now cryptocurrency exchange Bittrex, said he raised a reserve of $ 40 million completely composed of Bitcoin (BTC) with which to write traditional insurance and reinsurance businesses.
The insurer, who emerged in January this year with plans to offer responsibility policies backed by Bitcoin for directors and officials of the company (D&P), claims to be the first regulated risk carrier who trusts Bitcoin’s only reserves to write traditional policies with a price in US dollars. The firm has a class 2 insurance license of the Barbados Financial Services Commission.
The crossing between cryptography and insurance generally implies the qualification of existing risks categories for loss and theft to cover the hot and cold versions of the custody of digital assets. The tabit approach is interesting because explores the ways in which companies and people can capitalize on their Bitcoin holdings without getting involved in trade or incurring a significant counterpart risk.
The co -founder and CEO of Tabit, Stephen Stonberg, said that Bitcoin holders are invited to contribute assets to the company’s segregated reserve cell system, which is managed using non -custodial technology of the fire blocks, to obtain yields of around 10%. A good analogy of the world of insurance is the way in which accredited investors, known as “names”, implement assets in insurance unions in the Lloyd’s insurance market in London.
“For a technology like Crypto, you may need a new insurer, but the way in which insurance is performed is fundamentally the same as before,” said Stonberg in an interview. “We are celebrating our regulatory capital in Bitcoin, and I think that bringing a new source of capital to the insurance industry and innovating with the balance sheet is an opportunity that other people were not really looking at.”
