- According to reports, crypto start-up Meanwhile has just raised $40 million in a Series A funding round.
- Meanwhile is pushing forward with a life insurance product that allows people to pay their premiums in Bitcoin.
- Meanwhile is set to improve not just insurance but also how we pass on value across generations.
The blend between traditional finance and the crypto industry has taken another step forward this week. According to reports, crypto start up Meanwhile has just raised $40 million in a Series A funding round. This company offers life insurance policies that are paid out + funded in Bitcoin, and is betting big on the future of digital assets.
The said funding round is led by Framework and Fulgur Ventures, alongside participation from major investors like Wences Casares, the founder of crypto bank Xapo. This funding round has seen Meanwhile valued at $190 million, which is nearly double its valuation from the last round in 2022. Here’s what this means for the digital asset space.
Life Insurance, But in Bitcoin
Life insurance isn’t the first thing to come to mind when anyone thinks of crypto. However, Meanwhile CEO Zac Townsend sees it differently. His company is pushing forward with a life insurance product that allows people to pay their premiums in Bitcoin (BTC).
This arrangement also allows the policyholder’s beneficiaries to receive payouts in Bitcoin upon their death. According to Fortune, the main idea behind Meanwhile is to offer users a financial product that grows in value over time. Traditional life insurance policies typically pay out in fiat currencies like the Euro or US dollar.
However, with inflation now eroding the value of these fiat currencies, Townsend argues that Bitcoin offers a more useful alternative to this problem.
“It may feel like the dollar is not as sure a store of value as it might have been in the past,” Townsend said in a statement to Fortune.
“So the idea of storing some value for your kids… in this global, censorship-resistant, decentralized, uncontrollable currency in Bitcoin is very attractive. Bitcoin, despite its volatility, has proven to be a strong store of value over the long run.”
Handling Volatility with Long-Term Vision
It is no secret that Bitcoin is more volatile than most other financial assets. The cryptocurrency can swing wildly in a matter of days and raises questions about its use in something as serious as life insurance. However, Townsend believes that Bitcoin’s volatility is a short-term concern. From a long-term perspective, Bitcoin has historically outperformed many traditional assets.
“There’s no denying that Bitcoin is volatile,” Townsend says. “But if you zoom out, Bitcoin has continued to trend upward.”
Bitcoin as a life insurance vehicle is a calculated risk and is one that many crypto believers are willing to take. Meanwhile, on the other hand, it makes its profits from lending out the Bitcoin it holds to policyholders.
These loans are made to large, vetted firms like crypto exchanges and market makers with a 3% annual return on these loans. This income helps to fund operations and build a sustainable business model.
A New Frontier in Financial Security
For most people, life insurance is about stability and peace of mind. Introducing Bitcoin to this equation is the ultimate solution to the stability problem for individuals who see Bitcoin as the future of money. Meanwhile’s latest raise brings its total funding to over $60 million.
Notably, its initial $20.5 million round included several high-profile investors like OpenAI CEO Sam Altman and early Stripe employee Lachy Groom. This new $40 million will be used to expand the company’s presence on a global scale. As it stands, it’s not just about insurance anymore. It’s about rethinking how we pass on value across generations.
