Bitcoin Life Insurance Innovator Meanwhile Group Launches BTC Private Credit Fund
In a move that further expands the use of Bitcoin in the financial industry, Meanwhile Group, a Bitcoin life insurance innovator, has launched a private credit fund denominated in Bitcoin (BTC). The closed fund aims to offer investors a “conservative” yield in Bitcoin and lend funds in BTC to institutional counterparties at the discretion of the fund managers.
The Meanwhile BTC Private Credit Fund is designed to target a 5% yield for its participants over the fund’s term. By carefully vetting loan recipients, the fund effectively mitigates the risks associated with retail platforms that primarily provide loans to individuals, according to a statement released by the company.
Investors in the fund will contribute U.S. dollars, which will then be converted into BTC upon the fund’s closure. The funds will be loaned out in BTC, and fees will be charged in the same cryptocurrency. Zac Townsend, co-founder and CEO of Meanwhile Group, emphasized the unique opportunity this fund presents for institutional investors to unlock the full value of their BTC holdings while maintaining ownership.
“This private credit fund offers unparalleled potential for institutional investors to unlock the full value of their BTC holdings without compromising their ownership, seizing a unique opportunity for optimized returns,” said Townsend.
Meanwhile Group, which is backed by OpenAI and Worldcoin CEO Sam Altman, former Stripe executive Lachy Groom, and Google-linked Gradient Ventures, among others, has been making significant strides in integrating Bitcoin into various financial services. The company previously launched Meanwhile Insurance, a Bermuda-based insurance provider that accepts premiums and pays benefits exclusively in BTC. Currently available only in the United States, Meanwhile Insurance plans to expand its coverage to citizens of other countries in the future.
Meanwhile Insurance offers whole life insurance policies, which not only provide a death benefit but also have a cash value in BTC. This innovative approach to life insurance aligns with the growing trend of integrating cryptocurrencies into traditional financial products.
Furthermore, New York Digital Investment Group, a Bitcoin-related technology and investment services provider, secured $100 million in funding from major insurance providers in 2021 to develop “Bitcoin-powered solutions for U.S.-based life insurance and annuity providers.” This indicates a growing interest in leveraging Bitcoin’s potential within the insurance industry.
With Meanwhile Group’s BTC Private Credit Fund and Meanwhile Insurance’s Bitcoin-based life insurance solutions, the company is paving the way for the wider adoption of cryptocurrencies in the financial sector. As Bitcoin continues to gain mainstream acceptance, more innovative use cases are likely to emerge, offering individuals and institutions new opportunities to maximize the value of their digital assets.