Meanwhile Group Introduces Bitcoin-Denominated Private Credit Fund

Meanwhile Group, known for its innovative approach in the Bitcoin life insurance sector, has recently launched a pioneering private credit fund denominated in Bitcoin, targeting institutional investors. This move signifies a significant stride in the integration of cryptocurrency into traditional financial services.

The Meanwhile BTC Private Credit Fund, managed by Meanwhile Advisors, is designed as a closed fund offering a conservative yield. It aims to achieve a 5% yield for its participants, marking a unique proposition in the world of cryptocurrency investments. The fund operates by extending Bitcoin-based loans to institutional counterparts, with the decision-making process resting in the hands of the fund managers.

A key feature of this fund is its stringent screening process for loan recipients. This strategy aims to mitigate risks often associated with retail lending platforms that predominantly cater to individual borrowers. Investors in the fund will contribute in U.S. dollars, which are then converted into Bitcoin upon the fund’s closure. All lending and fee transactions within the fund will be conducted in Bitcoin.

Zac Townsend, co-founder and CEO of Meanwhile Group, highlights the fund’s unique offering to institutional investors. It allows them to leverage the value of their Bitcoin holdings without giving up ownership, presenting a novel way to engage with the cryptocurrency market.

The initiative has garnered support from high-profile figures and entities in the tech and finance sectors. Sam Altman, CEO of Worldcoin, Lachy Groom, a former Stripe executive, and Gradient Ventures, a Google-affiliated venture capital fund, are among its notable backers.

Meanwhile Group’s foray into the Bitcoin private credit fund follows its earlier venture, Meanwhile Insurance, launched in Bermuda in June with $19 million in initial funding. This insurance provider stands out for accepting premiums and paying out benefits exclusively in Bitcoin. While currently operational in the United States, the company plans to expand its services internationally.

This venture by Meanwhile Group reflects a broader trend where cryptocurrencies, particularly Bitcoin, are increasingly intersecting with traditional financial services. In 2021, New York Digital Investment Group secured $100 million from major insurance providers to introduce Bitcoin-powered solutions for life insurance and annuity providers in the U.S.

The launch of the Meanwhile BTC Private Credit Fund is a testament to the evolving landscape of financial services, where Bitcoin and cryptocurrencies are becoming increasingly integral. This innovative approach not only offers new avenues for institutional investors but also signifies the growing acceptance of cryptocurrencies in traditional financial sectors.