UAE Launches First Regulated Bitcoin and Ethereum Insurance Policies for Institutions

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New crypto-native insurance in UAE removes volatility risk for institutional BTC and ETH holders.

Soter Insure and Dubai Insurance P.S.C. announced a strategic partnership on February 9, 2026, to offer the UAE's first fully regulated insurance policies denominated and paid out in Bitcoin and Ethereum.
The policies eliminate asset-liability mismatch by allowing institutional holders to insure crypto assets in the same currency, protecting against volatility-driven coverage shortfalls.
Target customers include digital asset custodians, exchanges, and virtual asset service providers operating in the UAE's regulated digital finance ecosystem.
Soter Insure previously issued the world's first Bitcoin-denominated crime policy for a Tier 1 cryptocurrency exchange and holds full licensing from the Bermuda Monetary Authority.
Dubai Insurance brings established UAE regulatory credibility and local market experience to the partnership, while Soter provides specialized digital asset underwriting expertise.
Coverage extends across crime, custody, operational, and technology risks, with premiums and claims settled directly in BTC or ETH alongside traditional fiat options.

Strategic Partnership Addresses Institutional Cryptocurrency Custody Challenges

The UAE's ambition to establish itself as a leading hub for regulated virtual asset activity has taken a significant step forward with the introduction of crypto-denominated policies designed specifically for institutional market participants. Dubai Insurance P.S.C., one of the emirate's longest-established insurers, has partnered with specialized provider Soter Insure to launch what both firms describe as the first fully regulated insurance products in the UAE that can be denominated in and settled using Bitcoin and Ethereum. The development comes as the Virtual Assets Regulatory Authority (VARA) in Dubai continues to build a comprehensive framework for digital asset services, creating demand for sophisticated risk management tools that align with how institutional participants hold and manage crypto treasury positions.

For institutions managing large cryptocurrency holdings, traditional fiat-denominated insurance creates a structural problem: coverage limits set in dollars or dirhams do not move with Bitcoin or Ethereum prices, meaning that protection can become inadequate during periods of significant appreciation or remain excessive during downturns. Digital asset insurance products that denominate both premiums and claims in the underlying crypto assets eliminate this mismatch, ensuring that coverage remains proportionate to the actual value at risk throughout the policy period.

How Crypto-Denominated Policies Work

According to the joint announcement made on February 9, 2026, the new product suite allows policyholders to purchase insurance where policy limits, premiums, and claims are all denominated and settled directly in Bitcoin or Ethereum, rather than exclusively in fiat currencies. This structure ensures that the value of coverage remains in kind with the insured assets, so a claim made after Bitcoin has appreciated significantly is not eroded by the disparity between crypto prices and static fiat-based coverage caps.

Soter Insure founder and CEO Henson Orser stated that the collaboration "delivers an insurance architecture that finally speaks the language of the blockchain," emphasizing that BTC and ETH-denominated policies "ensure protection remains in-kind, removing the risk of market volatility." The partners frame the approach as eliminating digital asset price volatility risk for customers by indemnifying them in the same currency in which their assets are held or valued.

Proven Track Record in Bitcoin-Denominated Coverage

Soter Insure's model has already been tested in previous products, including the issuance of what it describes as the world's first Bitcoin-denominated crime policy for a Tier 1 global cryptocurrency exchange. That earlier product was structured as a BTC-denominated excess layer above a traditional fiat primary insurance programme, ensuring that catastrophic tail risk is covered directly in Bitcoin and that coverage scales with potential BTC price appreciation during the policy period.

The company's broader portfolio includes Directors and Officers (D and O), Asset Loss, and Smart Contract insurance policies that can be denominated in US dollars, Bitcoin, and Ethereum, with the stated goal of matching liabilities to the currency of the underlying insured assets. Soter secured full license approval from the Bermuda Monetary Authority (BMA) as a Class IGB insurer, enabling it to offer a suite of digital asset insurance products from Bermuda, which can then be localized through partnerships such as the one with Dubai Insurance for the UAE market.

Target Market and Coverage Scope

The new policies are specifically targeting institutional participants in the digital asset ecosystem, including custodians, exchanges, and other virtual asset service providers. The partnership aims to tailor coverage to a range of digital asset-related risks, including crime, custody, operational, and technology risks faced by institutional holders and service providers, although detailed line-by-line policy specifications have not been fully disclosed in public materials.

Dubai Insurance contributes deep experience in regulated insurance operations within the UAE, where it operates under the country's insurance regulatory framework and has an established customer base. Soter provides specialized digital asset risk engineering, underwriting, and product structuring. Senior leadership at Dubai Insurance has characterized the move as "responsible innovation built on sound risk management and regulatory alignment," noting that by becoming one of the first insurers in the UAE and the region to offer crypto asset-denominated policies, the firm is helping to "shape the next chapter of insurance."

Regulatory and Market Context

The UAE has been actively building a regulatory framework for virtual assets through entities such as VARA in Dubai and broader national digital economy strategies. Dubai Insurance's earlier introduction of a crypto-enabled digital wallet product that allows policyholders to pay premiums and receive claim settlements via a digital wallet with crypto functionality signals the firm's broader experimentation with blockchain-based financial services.

Combined with Soter's prior issuance of BTC-denominated policies and its Bermuda licensing, the partnership announcement is presented as a step toward building a comprehensive, regulated, crypto-native insurance stack for institutional users, which could become a differentiator for the UAE as it competes with other jurisdictions to attract digital asset businesses. While granular policy terms, regulatory filings, and specific coverage limits are not fully disclosed, the publicly available information underscores a clear intent to provide crypto-denominated, in-kind indemnification under a regulated insurance framework.

Implications for UAE Digital Finance Sector

The launch positions both firms as leading providers in what they describe as a rapidly expanding market, as the UAE continues to promote itself as a global hub for regulated virtual asset activity. For institutional crypto treasuries, this means that insurance arrangements can be integrated into broader risk and liquidity management strategies that already rely heavily on Bitcoin and Ethereum as core balance sheet assets.

Industry observers note that eliminating currency basis risk between insured assets and coverage has been a long-standing challenge for digital asset insurance, and the availability of crypto-denominated policies under a regulated framework addresses a structural barrier to broader institutional adoption. The specific licensing or approval pathway for these BTC and ETH-denominated insurance products within the UAE regulatory environment has not been fully detailed in the publicly available announcement.