NYDIG raises $100 million to launch’Bitcoin-based’ insurance.
According to Cointelegraph, a media specializing in cryptocurrency on the 8th (local time), the investment service company will become the head of a new global insurance solution and will take the lead in such a service.
The New York Digital Investment Group (NYDIG) announced that the round of financing growth capital as well as the start of a bitcoin-related business initiative has been completed.
In an announcement on the 8th, NYDIG announced that it has secured $100 million in funding from major insurance companies such as Star Insurance and Liberty Mutual Insurance through existing strategic partners such as New York Life and Mass Mutual.
NYDIG, a provider of bitcoin-related technology and investment services, also announced that it is launching a’bitcoin-based solution for American life insurance and pension providers’. As the global head of the insurance solution, Mike Sapnar, the CEO of a reinsurer who will join NYDIG, has been appointed.
Robert Gutman, NYDIG Co-Founder and Chief Executive Officer (CEO), said, “The growth of capital introduced by Star, Liberty Mutual and others will help the company’s bitcoin’expand into new insurance sectors’.” The company has raised $450 million over the past six months to drive Bitcoin-related businesses in insurance, banking and clean energy.
NYDIG Chairman Ross Stevens said, “A decline in value added leads to inflation in premiums, while reducing the purchasing power of claims.” “We see a bright future based on bitcoin for billions of people who rely on the insurance industry every year.”
NYDIG submitted registration documents to the U.S. Securities and Exchange Commission in February to launch a Bitcoin redemption fund. At the time, the company reported having over $3 billion in digital assets.