NYDIG to launch new Bitcoin-powered insurance solution

By Joanna England
NYDIG has raised $100m from leading insurance providers to help fund the new Bitcoin driven initiative...

New York Digital Investment Group (NYDIG) has announced the launch of a new business insurance initiative following the completion of a growth capital funding round.

The company secured $100m in funding and will be launching the “Bitcoin-powered solutions for US-based life insurance and annuity providers.” 

Currently, NYDIG provides Bitcoin investment and technology solutions to insurers, banks, corporations, institutions, and HNW individuals.  

The news follows on from the announcement that former TransRe CEO, Mike Sapner, will be spearheading the effort as NYDIG’s new Global head of insurance solutions. TransRe is one of the world’s largest reinsurers.

Investors backing the new Bitcoin-based insurance solution include Starr Insurance, Liberty Mutual Insurance, and others in addition to its existing strategic partners, New York Life and MassMutual.

Bitcoin insurance solutions

Speaking about the new insurance solution launch, Robert Gutman, NYDIG's co-founder and CEO, said the new capital funding would accelerate the “expansion of Bitcoin into new areas of insurance.” 

Over the past six months, NYDIG has generated $450m for Bitcoin-related business initiatives on clean energy, insurance and banking.

Ross Stevens, NYDIG’s ex ecutive chair, explained, "Fiat depreciation causes inflation in fiat premiums, while collapsing the purchasing power of claims. We see a brighter Bitcoin-powered future for the billions who depend on the insurance industry every year.”

He continued, “The global property & casualty (P&C) industry is huge, paying out over $1 trillion in claims annually. I am excited to welcome Starr and Liberty Mutual to NYDIG, as part of our expansion of bitcoin into new areas of insurance." 

“The team and I are also thrilled to welcome Mike and Matt to NYDIG. Mike has been a close collaborator with Stone Ridge since 2014, primarily with our catastrophe reinsurance asset management franchise and our non-catastrophe reinsurer, Longtail Re. Mike's more than 30 years of experience will help NYDIG lead the way in bringing bitcoin to the insurance industry."

Bitcoin exchange

According to reports, NYDIG has over $3bn in digital assets under custody. Earlier this year the company also filed a registration statement with the US Securities and Exchange Commission to create a Bitcoin exchange-traded fund. 

Hank Greenberg, Chairman and CEO of Starr said, "We've been broadly and successfully investing with Ross and the Stone Ridge team across their various initiatives for years, including as a founding NYDIG investor in 2017. We are excited to continue our tradition of co-investment with them.”

He added, “We've also worked closely with Mike Sapnar for more than 25 years and congratulate Mike and NYDIG on his joining, and further propelling, the Stone Ridge ecosystem."


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