Even after a year of price swings, Bitcoin has maintained an upward trajectory, its total value climbing to roughly US$1.8 trillion and accounting for more than half of the crypto market. The story of Meanwhile, the world’s first Bitcoin-denominated life insurance company, showcases what happens when the digital currency moves from trading screens to the staid world of life insurance.

The convergence of crypto and traditional finance remains a hot topic. It is not just about technology, but the fusion of established rules, legal systems, and trusted practices.  

“There are a lot of people trying to figure out how to incorporate Bitcoin into other products, like most of my networks in the US,” says Meanwhile chief insurance officer Jim Cristallo. “And they're actively working on this, but hitting dead end after dead end.” So far, the most prevalent attempt is cryptocurrency index funds.

Meanwhile has taken the challenge a step further. Licensed by the Bermuda Monetary Authority after a rigorous proof-of-concept and regulatory sandbox process, the company offers whole life insurance with coverage and payments tracked and paid in Bitcoin. “There weren't even rules written for it when we started down the process of acquiring the licence. That's how early we were,” says chief technology officer Max Gasner.

Focusing on the high-net-worth ( HNW ) clientele, Meanwhile taps those who are already committed to Bitcoin. “BlackRock is out there telling the world to put 2% of their long-term assets into Bitcoin. That's where I see the opportunity on the life insurance side – by offering an add-on, exposure to Bitcoin,” says Cristallo.

“Life insurance is used around the world in a lot of different ways. What we're seeing here in Hong Kong and East Asia is a need for savings, for estate planning, for creating wealth for the next generation. In the US, it's much more tax-driven,” says Michael Grob, head of international distribution at Meanwhile.

Guaranteed yield

With premium paid in Bitcoin, the product is designed for holders of the cryptocurrency who want to hold, grow, and pass on their Bitcoin wealth in a tax-advantaged structure. The company boasts compliance with capital reserve and solvency standards aligned with Europe's Solvency II framework.

Being the first in the market, Meanwhile has to face not only the regulatory challenge but also invest in Bitcoin for yields. “And that's a very hard exercise that most people have failed at,” says Cristallo.

Meanwhile’s products offer a guaranteed yield of 2% each year. “We have a very conservative credit desk that enters into lending arrangements in order to get that yield. And we've had no credit losses to date,” Gasner shares.

Its offering has attracted about 100 HNW clients. “People look at my product and they say, ‘This is pretty basic.’ We've kept it that way on purpose. We're providing a structure to hold Bitcoin long-term for savings, protection, and planning needs. And we don't need to overcomplicate,” says Cristallo.

“I actually think that the problem with some of the existing insurance businesses is they've overcomplicated it to a point where it's hard for the individual to understand what they're buying,” he adds.

Many insurance policies on the market have too many features. “That’s because every time somebody comes out with a new product, the competitors copy whatever the most successful one is, and they add new features,” Grob explains. “We found that our distribution partner or broker wants to be a thought leader, wants to help their clients think about things differently. And so those new features have value, too.” But many clients may not care about most of those features.

Business growth

Recent news headlines about Bitcoin’s volatility have not impacted Meanwhile’s business. “Because all of the business is in Bitcoin,” says Gasner. “The price of Bitcoin has no effect on the company's internal financials.”

In October, Meanwhile raised US$82 million in a Series B funding round, led by Apollo. “Our seed funding was led by OpenAI’s Sam Altman, and in the early rounds, we had a fair number of Silicon Valley HNW individuals. Institutional credibility is the most important in the Series B fundraise, indicating that many people are starting to believe that this kind of product is here to stay,” says Gasner.

“For bitcoiners, they're like a smaller community but everywhere around the world,” says Cristallo, noting that word of mouth has contributed to their business growth. “We get inbound interest from all over the world, including the US, Canada, Europe, Latin America, Dubai, the Middle East, etc.”  With the funding, Meanwhile plans to build and sell international products for wealthy cross-border citizens.

Meanwhile maintains a positive outlook for Bitcoin. “When you look at the world, there’s the political instability and the possibility of fiat debasement. The idea of a currency that no single group controls is attractive. And time will tell how attractive. But I think there's a very hopeful story in Bitcoin that promotes global integration and promotes peace,” says Gasner.

Institutional participation is key. “We need good actors in the system. We need companies like ours that are trying to do legitimate business. And we need the institutional interest and the interest from people – it needs to snowball,” says Gasner. “The winners will be companies that are doing everything the right way.”

To further develop the ecosystem, real economic activity denominated in cryptocurrency would be a tipping point, according to Cristallo. “I would like to see stores taking Bitcoin. I'd like to see energy markets denominated in Bitcoin. I think that will be a really big turning point,” he says.