Barbados-based insurer Tabit has raised $40 million in Bitcoin

In a move the company said would bolster its balance sheet and allow the insurance sector to capitalize on digital assets.

Barbados-based insurer Tabit has raised $40 million in Bitcoin (BTC) for its insurance facility, the company disclosed in a March 24 announcement.

The funds will be used to back traditional insurance policies, which are all denominated in US dollars. Tabit claims to be the first property and casualty insurer to hold its entire regulatory reserve in BTC.

The company was founded by former executives of Bittrex, a Liechtenstein-based cryptocurrency exchange that was shuttered in 2023.

“We are able to offer a solution with a regulated dollar return, which we’re excited to earn on an alternative asset class such as Bitcoin,” said William Shihara, Tabit’s co-founder.

According to a company spokesperson, Tabit has limited use cases for BTC due to its regulatory status. However, the spokesperson said that, “Bitcoin means Tabit has access to a whole new pool of capital.”

“This solution provides a use case for Bitcoin where it can be held for a regulatory purpose to generate a dollar-denominated yield, which is limited by regulation, and Tabit is excited to be compliant in both cases,” Shihara added.

Tabit launched in January as a Bitcoin-backed insurer, receiving a Class 2 license from Barbados’ Financial Services Commission. The company is also planning to apply for a Class 3 license, which would allow it to provide reinsurance and expand its operations beyond Barbados.

Earlier this month, Tabit completed a Series A funding round with several unnamed institutions and family offices. The company said it would use the funds to increase its insurance capacity and expand into new markets.

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