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.
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 “participants to transfer up to 5% of their portfolio into a cryptocurrency window where they can invest in over 50 cryptocurrencies.”
Jeff Schulte, the CEO of ForUsAll, said:
“By introducing the Alt 401(k), we are democratizing access to what drives wealth for the wealthy—alternative investment options, combined with our original core offering of low-cost index funds, and personalized help.”
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:
“With 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 “6 out of 10 institutional investors feel that digital assets have a place in their portfolio and 36% are already using it.”
Brett Tejpaul, a top executive of Coinbase highlighted the benefits of crypto expansion into a retirement plan.
According to Tejpaul:
“The 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.”
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.