NYDIG's $100M Round From Liberty Mutual, Starr, Gives Rise To Bitcoin Insurance Products
New York-based Bitcoin investment firm NYDIG Bitcoin Strategy Fund (NASDAQ:BTCNX) has raised $100 million in growth capital from insurance giants like Starr Insurance, Liberty Mutual Insurance, existing strategic investors like New York Life and MassMutual.
What Happened: The company also announced that Mike Sapnar, CEO of Reinsurance giant TransRe, would be NYDIG’s new Global Head of Insurance Solutions.
Sapnar will reportedly lead the company’s efforts to accelerate a bitcoin-driven innovation in the global property and casualty (P&C) industry. The executive joins NYDIG's U.S. Head of Insurance Solutions, Matt Carey, who will focus on delivering bitcoin-powered solutions for U.S.-based life insurance and annuity providers.
Robert Gutmann, co-founder and CEO of NYDIG, said, "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."
See also: Best Crypto and DeFi Insurance
Why It Matters: The demand for Bitcoin-denominated products among institutions has expanded across various sectors. According to Ross Stevens, CEO of NYDIG and asset management firm Stone Ridge, the insurance industry has much to gain from bitcoin-denominated products.
"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,” said Stevens.
Price Action: Bitcoin was trading at $58,771 at the time of writing, up 1.07% in the past 24-hours. The market-leading cryptocurrency reached new highs above $61,000 on March 14 but has not managed to consistently trade above the $60,000 level since.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.