- Meanwhile raised $40M Series A funding to expand its Bitcoin-based life insurance products and scale global regulatory compliance.
- The firm offers crypto-native life insurance with Bitcoin-only payouts, appealing to long-term holders seeking fiat-free financial solutions.
- Revenue comes from lending client Bitcoin to institutions, earning 3% profit while managing risk from crypto volatility and regulation gaps.
The crypto-based life insurance company Meanwhile raised $40 million in Series A funding led by Framework Ventures and Fulgur Ventures. Other prominent crypto industry figures who participated in the round included Wences Casares, founder of crypto bank Xapo. The valuation for Meanwhile is also now $190 million, nearly doubling what it was in a 2022 funding round.
Before that, the firm had raised $20.5 million in 2022 from investors including Sam Altman, CEO of OpenAI; and Lachy Groom, an early Stripe team member. Part of the new funding will be used for scaling of company’s operations globally and bringing the company in compliance with regulations in different jurisdictions. Meanwhile introduced its approach, which reflects a rising wave of crypto native services that offer financial alternatives to traditional fiat based models.
Bitcoin Life Insurance Model and Market Proposition
Meanwhile, life insurance products from its offer comes with a unique structure; payments and compensations are done in Bitcoin only. Users can pay their premiums directly from their crypto wallets, courtesy of the company. When a policyholder dies, the claim is settled in Bitcoin, and beneficiaries are paid in the same cryptocurrency, the value corresponding to the policy.
Thus, this model differs from the traditional insurance products that usually run on fiat currencies. Zac Townsend, the co founder and CEO, says the idea is to create a product that complements Bitcoin holders’ long term financial goals given their concerns about inflation and fiat currency devaluation. The offering is designed for a demographic that wishes to store and grow value in Bitcoin for long periods.
Revenue Generation and Lending Operations
Meanwhile, it lends its clients’ Bitcoin to institutional entities, such as crypto exchanges and market makers, to generate revenue. The loans provided through these lending agreements are usually for one or two years. However, the company only makes a 3% profit on the transactions, which goes into operational costs and insurance payouts.
This model comes with intrinsic risk, as Bitcoin has high market volatility, and the lending counterparties are exposed to it. However, Townsend says the company’s approach is designed to capture long-term value appreciation in Bitcoin, not short-term price movements.
Unlike most health care insurers, the company uses actuarial methods to set policy premiums. The main difference is in the use of an asset base and a currency on which the policies are managed. Specifically, this structure is designed for a unique subset of crypto investors who are ready for legacy planning tools that stay entirely in the digital asset world.
Global Expansion and Regulatory Focus
For now, the company plans to use the newly raised capital to expand its offerings beyond the United States. As it expands internationally, its Bitcoin-based life insurance products will be tailored for legal and regulatory compliance across different markets.
The company includes regulatory compliance as a critical component. The integration of cryptocurrency complicates this considerably because, while life insurance is heavily regulated in most jurisdictions, there exists little regulation regarding cryptocurrency. Townsend stressed that the company will work to ensure that its products meet legal standards as it moves into new markets.
The company’s focus on growth, compliance, and international growth puts it in a good position to capitalize on the global interest in crypto-native financial services. Nevertheless, the product stands out not only through its use of Bitcoin but also in its effort to construct a compliant, long-term financial infrastructure for digital asset owners.
