Coinbase Teams Up With 401(k) Provider to Allow Workers to Invest Up to 5% of Account Balance in Crypto
The biggest cryptocurrency exchange Coinbase has partnered with a 401(K) provider, ForUsAll Inc., to allow workers to invest up to 5% of their 401 (K) contributions in cryptocurrencies, starting in July, reported WSJ. Brett Tejpaul, Head of Institutional Coverage at Coinbase said,
“When we created our institutional platform, our initial focus was making cryptocurrency accessible to institutional investors and high-net-worth individuals.”
The next evolution is to broaden the company's reach and expand access to cryptocurrency through 401ks, he added.
Founded in 2012, ForUsAll has 400 employer clients, but the executives didn’t reveal just how many have signed up for the cryptocurrency platform so far.
The company aims to provide Americans the tools to “build a brighter financial future” and access to alternative investments that have been exclusive to wealthy and professional investors, noted company CEO, Jeff Schulte.
The company has $1.7 billion in retirement plan assets, representing a small portion of the $22 trillion retirement account market.
But this marks the first step in the retirement-account market towards the crypto space which is experiencing heightened mainstream interest and adoption. David Ramirez, Co-founder, and Chief Investment Officer said,
“The reality is that alternative asset classes which increasingly include small allocations to cryptocurrency have become an important part of many institutional portfolios.”