Former Bittrex Executives Raise $40M in BTC to Back Barbados-Licensed Insurance Company

Former Bittrex Executives Provide $40 Million in Bitcoin to Support Barbados-License Insurance Firm

Barbados-regulated insurance company Tabit Insurance has raised a $40 million insurance line funded entirely in Bitcoin (BTC).

Author: Ian Ellison | Edited by Sheldon Reback Updated Mar 24, 2025 9:41 AM UTC Published Mar 24, 2025 1:00 AM UTC

Key facts:

• In January, Tabit announced it was offering directors and officers liability insurance policies denominated in dollars and backed by bitcoin reserves.
• The company holds a Class 2 insurance license issued by the Barbados Financial Services Commission.

Barbados-regulated Tabit Insurance, founded by former executives of defunct cryptocurrency exchange Bittrex, has announced it has raised $40 million in reserves, all in Bitcoin (BTC), to provide traditional insurance and reinsurance.

The insurer, which emerged in January this year with plans to offer bitcoin-backed directors and officers (D&O) liability policies, claims to be the first regulated risk insurer to rely solely on bitcoin reserves to write traditional U.S. dollar-denominated policies. The firm holds a Class 2 insurance license from the Barbados Financial Services Commission.

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The transition between cryptocurrency and insurance typically involves incorporating existing loss and theft risk categories into coverage for hot and cold storage options for digital assets. Tabit’s approach is interesting because it explores ways for firms and individuals to extract value from their bitcoin assets without having to trade or incur significant counterparty risk.

Tabit co-founder and CEO Steven Stonberg noted that bitcoin holders can deposit their assets into the company's segregated reserve cell system, which is managed using non-custodial technology from Fireblocks, to earn returns of around 10%. A good analogy from the insurance sector is the way accredited investors known as “Names” place assets in insurance syndicates on the Lloyd's of London insurance market.

“With a technology like cryptocurrency, you may need a new underwriter, but the principle of insurance remains the same,” Stonberg said in an interview. “We hold our regulatory capital in bitcoin, and I think bringing a new source of capital into the insurance space and innovating with the balance sheet is an opportunity that others haven’t considered.”

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