Coinbase teams up with 401(k) provider to offer cryptocurrency plans for retirement ๐จ This article is 3 years old...
Coinbase teams up with 401(k) provider to offer cryptocurrency plans for retirement
Employees can invest in over 50 cryptocurrencies as part of the plan.
2 min read
Updated: Jun. 10, 2021 at 8:17 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Nasdaq listed cryptocurrency exchange, Coinbase, has teamed up with ForUsAll, which is a leading investment platform for small and medium businesses, to provide crypto investment options in the 401k plans.
Per the announcement, this partnership will allow โparticipants to transfer up to 5% of their portfolio into a cryptocurrency window where they can invest in over 50 cryptocurrencies.โ
Jeff Schulte, the CEO of ForUsAll, said:
โBy introducing the Alt 401(k), we are democratizing access to what drives wealth for the wealthyโalternative investment options, combined with our original core offering of low-cost index funds, and personalized help.โ
Increased Crypto Adoption Played a Role in the Decision
A report from WallStreetJournal estimated the value of the retirement plan in the company to be around $1.7 billion. The report added that the current explosion in crypt adoption in other industries played a role in this development:
โWith just $1.7 billion in retirement plan assets, ForUsAll represents a small piece of the $22 trillion retirement-account market. But its embrace of crypto comes at a time of heightened mainstream interest in digital currencies.”
The firm added that โ6 out of 10 institutional investors feel that digital assets have a place in their portfolio and 36% are already using it.โ
Brett Tejpaul, a top executive of Coinbase highlighted the benefits of crypto expansion into a retirement plan.
According to Tejpaul:
โThe next evolution is to broaden our reach, and we are thrilled to be working with Forusall, the leading 401k technology platform, to expand access to cryptocurrency through 401ks.โ
ForUsAll helps over 600,000 employees from companies like Target, Coca Cola and Citigroup to manage their retirement plans.
The 401(k) plan is an employer-sponsored contribution pension account, founded in 2012, providing automated 401(k) administration, menus of low-cost mutual funds, and access to human advisers, and it is recognized in the subsection 401(k) of the Internal Revenue Code.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.