Tabit Insurance SCC made headlines with the announcement of a groundbreaking $40 million insurance facility, entirely funded in Bitcoin. This milestone marks the first instance of a property and casualty (P&C) insurer maintaining all regulatory reserves in BTC while conducting insurance policies and premiums in U.S. dollars. The company touts the advantages of this funding strategy, enabling regulators and auditors to validate reserves in real-time.
Alternative Source of Capacity
Tabit aims to introduce a new source of capacity for the insurance industry through its use of BTC as capital. Operating as a segregated cell company, Tabit can create additional cells to deploy capital within the insurance sector. This structure also allows BTC holders to earn USD returns through their segregated cells.
Confidence in Capital Allocation
Co-founder of Tabit, William Shihara, expressed confidence in the company's capital allocation strategy, highlighting the combination of traditional balance sheet strength with assets like bitcoin. This approach enables Tabit to adapt to market changes effectively and better serve the insurance community. The solution offers a regulated dollar return on alternative assets such as bitcoin.
Blockchain Verification and Transparency
Tabit ensures transparency by providing verifiable reserves on the blockchain through a proof-of-reserves model. This approach goes beyond the industry's standard quarterly disclosures, offering real-time visibility into reserves.
Driving Innovation in Insurance
CEO and co-founder Stephen Stonberg emphasized Tabit's commitment to innovation within the insurance sector. By leveraging digital assets as a new source of insurance capital, Tabit aims to propel the industry forward and showcase the potential of alternative risk financing options.
Barbados Headquarters and Regulatory Oversight
Headquartered in Bridgetown, Barbados, Tabit operates within a jurisdiction renowned for its captive insurance market and regulatory framework. Barbados provides robust oversight for Tabit's operations, ensuring compliance and stability.
Future Collaborations and Opportunities
Tabit plans to collaborate with insurance carriers, brokers, and organizations seeking additional capacity or alternative risk financing solutions. The company also looks to engage with digital asset holders interested in generating USD income while maintaining exposure to BTC.
For more information about Tabit Insurance SCC, visit their website.
This article on Tabit Insurance SCC's $40 million Bitcoin-funded insurance facility was originally published on Bitcoin Magazine and authored by Nik.
Frequently Asked Questions
Is the government allowed to take your gold
Because you have it, the government can't take it. You worked hard to earn it. It belongs exclusively to you. But, this rule is not universal. If you are convicted of fraud against the federal government, your gold can be forfeit. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
What's the advantage of a Gold IRA?
There are many advantages to a gold IRA. You can diversify your portfolio with this investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are readily available at most banks and brokerages. Withdrawals can be made instantly without the need to pay fees or penalties.
But there are downsides. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. One ounce won't be enough to meet all your needs. You could need several ounces depending on what you plan to do with your gold.
You don't need to have a lot of gold if you are selling it. You can even get by with less than one ounce. You won't be capable of buying anything else with these funds.
How much gold should your portfolio contain?
The amount of money you need to make depends on how much capital you are looking for. If you want to start small, then $5k-$10k would be great. As you grow, it is possible to rent desks or office space. You don't need to worry about paying rent every month. You just pay per month.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. So if you do this kind of thing, you need to consider how much income you expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. Therefore, you might only get paid one time every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k to $2k of gold, and then growing from there.
Is it a good retirement strategy to buy gold?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion is the most popular method of investing in gold. You can also invest in gold in other ways. It's best to thoroughly research all options before you make a decision.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. Owning gold stocks should work well if you need cash flow from your investment.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
Can I hold a gold ETF in a Roth IRA?
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
An Individual Retirement Annuity (IRA) is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs will not be taxed
How much are gold IRA fees?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge annual management costs. These fees range between 0% and 1 percent. The average rate for a year is.25%. These rates can be waived if the broker is TD Ameritrade.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
bbb.org
finance.yahoo.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
cftc.gov
How To
The best place online to buy silver and gold
Understanding how gold works is essential before you buy it. It is a precious metal that is very similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They can't be exchanged in currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. The buyer receives 1 gram of gold for every dollar spent.
Next, you need to find out where to buy gold. There are many options for buying gold directly from dealers. First, you can visit your local coin store. Another option is to go through a reputable site like eBay. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. A private seller will usually return less money than a coin shop and eBay. This is a great option for gold investing because you have more control over the item’s price.
You can also invest in gold physical. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks charge higher interest rates than those offered by pawn shops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can also be done easily. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
—————————————————————————————————————————————————————————————-
By: Nik
Title: Tabit Insurance SCC Secures $40 Million Bitcoin-Funded Insurance Facility
Sourced From: bitcoinmagazine.com/news/tabit-insurance-raises-40-million-bitcoin-funded-insurance-facility
Published Date: Mon, 24 Mar 2025 16:09:31 +0000
