New York Digital Investment Group (NYDIG) has announced the launch of a business initiative relating to Bitcoin as well as the completion of a growth capital funding round.
It has been reported that NYDIG had secured $100 million in funding from major insurance providers including Starr Insurance, Liberty Mutual Insurance, and others in addition to its existing strategic partners, New York Life and MassMutual.
However, a provider of Bitcoin-related technology and investment services, NYDIG also said it would be launching “Bitcoin-powered solutions for US-based life insurance and annuity providers.”
Could this cash infusion affect the way crypto is handled by insurance providers? https://t.co/Hcz1AY2Ahp — Cointelegraph (@Cointelegraph) April 8, 2021
This comes as the firm announced the addition of reinsurance company TransRe CEO Mike Sapnar, who will be joining NYDIG as the global head of insurance solutions.
Robert Gutmann, the co-founder and CEO of NYDIG, said that growth from capital introduced by Starr, Liberty Mutual, and other companies would help the firm’s “expansion of Bitcoin into new areas of insurance.”
The company has raised $450 million in the last six months for Bitcoin-related business initiatives on insurance, banking, and clean energy.
Ross Stevens, the executive chair of NYDIG, said:
“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.”
Thus, in February, NYDIG filed a registration statement with the US Securities and Exchange Commission to launch a Bitcoin exchange-traded fund.