Crypto Startup Meanwhile Raises $40M for Bitcoin Life Insurance

Crypto startup Meanwhile has successfully raised $40 million in its Series A investment round, led by Framework Ventures and Fulgur Ventures, with additional support from Xapo founder Wences Casares. This funding round aims to scale the company's Bitcoin-denominated life insurance business, targeting economies that are prone to inflation. These economies often seek alternatives to traditional fiat-based payouts, making Bitcoin an attractive option for safeguarding the value of life insurance policies against currency debasement.

Meanwhile, which is regulated by the Bermuda Monetary Authority, offers a whole life insurance policy denominated in Bitcoin (BTC). This policy allows policyholders to access the value of their life insurance at any time through loans and tax-free partial withdrawals. The company's co-founder, Zac Townsend, explained that the policies operate similarly to typical life insurance policies, but with a key difference: monthly premiums are paid in Bitcoin, and upon the policyholder's passing, their family receives the value of the claim entirely in BTC.

The company's policies are particularly geared toward clients living in regions with high inflation or currency instability. Given the inflationary tendencies of various economies and the extreme currency fluctuations in emerging markets, Meanwhile has a broad addressable market. This strategic focus allows the company to provide a stable and reliable financial product in regions where traditional insurance may not offer the same level of protection against economic volatility.

Bitcoin's deflationary design has made it a popular store of value for early cryptocurrency adopters. However, its role as an inflation hedge in the traditional sense is subject to debate. A study that appeared in the Journal of Economics and Business determined that Bitcoin’s inflation-hedging abilities have weakened in recent years due to rising institutional adoption. The study referenced Bitcoin’s 60% drop in 2022 when US inflation surged to a 40-year high above 9%.

Some analysts may counter that claim by arguing that investors purchased Bitcoin during the pandemic on expectations that inflation would rise due to massive government stimulus. During this period, investors saw that inflation was coming, so they began buying bitcoin hand-over-fist. Regardless of whether Bitcoin meets the technical definition of an inflation hedge, the asset has significantly outperformed inflation, or the debasement of currency, since its inception.

Meanwhile's previous seed funding round, which secured $20.5 million, was backed by notable figures such as OpenAI CEO Sam Altman. This early investment has laid the groundwork for the company's current expansion efforts, allowing it to develop and refine its Bitcoin-denominated life insurance product. With the new $40 million in funding, Meanwhile is well-positioned to scale its operations and reach a broader audience in inflation-prone economies.

The company's innovative approach to life insurance, which leverages the stability and deflationary nature of Bitcoin, offers a compelling alternative to traditional fiat-based policies. By providing policyholders with the ability to safeguard the value of their life insurance against currency debasement, Meanwhile is addressing a critical need in regions where economic instability is a significant concern. The company's success in securing substantial funding from prominent investors underscores the growing interest in cryptocurrency-based financial products and the potential for Bitcoin to play a key role in the global insurance market.