The Insurance Industry And Bitcoin

Early on the morning of March 10, NYDIG, a financial services firm dedicated to Bitcoin and built specifically for institutional clientele, announced that Ted Mathas, chairman and CEO of New York Life Insurance Company, would be joining its board of directors.

New York Life is an insurance giant with more than $700 billion in assets under management as it operates as the nation’s largest mutual life insurer. Mathas also serves as the chairman of the American Council of Life Insurers, which represents 280 companies and accounts for 95 percent of the life insurance industry in the United States, with more than $7 trillion in assets under management.

The news of Mathas joining the board of NYDIG cannot be understated. As signalled by MassMutual buying $100 million worth of bitcoin in early December 2020, the asset has seemingly crossed the rubicon and become sufficiently derisked, and is now crossing into must-own territory for institutional investors and asset managers. While Mathas hasn’t commented publicly on the move, one can reasonably expect that there is plenty of action happening behind the scenes to get the majority of the insurance industry off of a 0 percent bitcoin allocation. The insurance industry and bitcoin are a match made in heaven for several reasons, and it is quite reasonable to expect the industry to allocate in a meaningful way over the coming years.

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