San Francisco-based retirement investment platform for small businesses, ForUsAll, has recently introduced a new investment option that allows its clients to offer cryptocurrency within 401(k) plans.
According to an official announcement, ForUsAll said that it has partnered with the leading cryptocurrency exchange, Coinbase, to help it enable this new feature dubbed the “Alt 401(k).”
This new retirement investment option offers ForUsAll’s clients access to transfer up to 5% of their 401(k) portfolio balance into a cryptocurrency account that allows them to buy, store, and sell more than 50 different cryptocurrencies.
Clients will also receive education on how the new feature works. ForUsAll will regularly monitor the account to ensure that clients are duly informed when their allocation to alternative investment exceeds 5%.
The company’s CEO, Jeff Schulte said,
“Our mission is to provide every American with the tools necessary to build a brighter financial future, and making these alternatives more readily available is a key step towards that. 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.”
Brett Tejpaul, the head of Institutional Coverage at Coinbase added,
“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 our reach and we are thrilled to be working with ForUsAll, the leading 401(k) technology platform, to expand access to cryptocurrency through 401(k)s.”
The Growing Need For Alternative Investments
ForUsAll noted that both individual and institutional investors are becoming increasingly interested in allocating their investable funds in alternatives like cryptocurrencies.
However, the company pointed out that the volatility of cryptocurrencies is concerning and has deemed it necessary to provide “prudent education and advice” for all the participants.
With the growing interest in crypto investment, several companies like Tesla, MicroStrategy, and Square have allocated substantial funds to cryptocurrencies.
Just recently, MicroStrategy revealed plans to offer $400 million convertible senior notes to purchase more bitcoins.
