Meanwhile Insurance Bitcoin (Bermuda) Raises $19 Million for BTC-Denominated Policy Development
Life insurance company Meanwhile Insurance Bitcoin (Bermuda) has successfully raised $19 million to facilitate the creation of an innovative life insurance policy denominated in bitcoin (BTC). With a focus on the growing economy surrounding the largest cryptocurrency, the Bermuda Monetary Authority-licensed company conducted two seed rounds to secure the funds.
The first round was co-led by Sam Altman, CEO of OpenAI, the developer of ChatGPT, and Lachy Groom, a former executive at Stripe. The second round was led by Gradient Ventures. The company, previously known as Standard Crypto Insurance, is registered under that name with the BMA, as confirmed by CEO Zac Townsend in an interview with CoinDesk.
The newly acquired funds will be allocated to the establishment of a development team for Meanwhile’s inaugural product. The initial target audience for the BTC-denominated life insurance policy consists of U.S. citizens who hold significant amounts of BTC and seek tax-advantaged means to protect their families. Townsend expressed that the company has observed substantial early demand from this particular demographic.
Townsend emphasized the logical reasoning behind long-term BTC holders investing in a life insurance policy denominated in the same asset, allowing a portion of their BTC holdings to be actively utilized. The integration of artificial intelligence (AI) will play a crucial role in various aspects of the company’s operations, including underwriting, claims processing, and overall management, according to an official statement.
Regarding concerns about BTC price volatility, Townsend assured that such market movements do not impact Meanwhile’s underwriting or guarantee processes. As premiums are collected and claims are paid out in BTC, the company remains resilient to the fluctuations in BTC’s value. Townsend envisions that hundreds of millions of individuals will enter the bitcoin economy in the coming decades, and Meanwhile aims to establish itself as the life insurance provider tailored to their needs.
While the insurer itself may be relatively immune to BTC fluctuations, policyholders will bear some of the risk due to the potential influence of price changes on the value of their payouts. Nonetheless, Townsend expressed confidence in BTC’s long-term value, stating that the current and future prices are insignificant compared to BTC’s sustained worth.
%s Comment