This paper presents an innovative framework centred on a stablecoin called Risk Coin, designed to transform traditional insurance through participatory mutual risk pooling, or Risk Fund. By addressing key limitations of conventional insurance—often treated as a zero-sum game that erodes trust, raises transaction costs, and leaves coverage gaps—the model aims to improve insurability, affordability, and efficiency. Through payoff matrix analysis, it shows aligning individual returns with overall fund performance can break non-cooperative equilibria and strengthen participation incentives. The paper also develops a premium utility model and an investment-type reinsurance mechanism to better integrate direct insurance, reinsurance, and capital markets. A collateralized Risk Coin system is proposed to reduce governance costs related to moral hazard, serving as a link between risk protection, benefit distribution, and capital allocation. Importantly, risk capital allocation via Risk Coins follows the Coherent Risk Capital Allocation Principle and Aumann Shapley Value, ensuring fair and consistent distribution based on actual risk contributions. This structure not only enhances the insurability of complex risks but also provides an institutional basis for blockchain-based financial stability and new stablecoin anchoring mechanisms. While the current model assumes independent, identically distributed risks and pure loss rating, it acknowledges the need for future work on heterogeneous correlations, scale effects, intertemporal hedging, and personalized risk preferences. Overall, the Risk Coin Model offers a novel pathway to expand insurability through institutional innovation, technology, and incentive alignment, with strong potential for next-generation insurance and risk-sharing systems.