Some employees will soon be able to add cryptocurrency investments to their 401(k) plans as part of a new first-of-its-kind partnership between exchange operator Coinbase and investment platform ForUsAll.

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The new retirement account, called the Alt 401(k), allows investors to use up to 5% of their contributions to buy, hold and sell more than 50 cryptocurrencies. To help employees use cryptocurrencies appropriately, ForUsAll provides personalized support and automatically alerts participants when their allocation exceeds 5% of their portfolio.

Jeff Schulte, CEO of ForUsAll, said, “By introducing the Alt 401(k), we are democratizing access to wealth-promoting access for the wealthy – our core offering of alternative investment options, low-cost index funds, and personalized help. with.” a statement.

Founded in 2012, ForUsAll serves over 700,000 clients and manages over $1.7 billion in assets. A spokesperson for the company told Granthshala Business that more than 60% of its customers have expressed interest in the plan in the past three months.

“When we created our institutional platform, our initial focus was to make cryptocurrencies accessible to institutional investors and high net worth individuals,” said Brett Tejpaul, Coinbase Head of Institutional Coverage. “The next development 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.”

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David Ramirez, co-founder and chief investment officer of ForUsAll, argues that although cryptocurrencies can be a volatile and complex investment, they can help improve portfolio diversification and expected returns.

“Technologies like blockchain and cryptocurrencies have the potential to transform our economy,” Ramirez said. “Combining access to these assets with education and portfolio monitoring could allow more Americans to benefit from these emerging technologies.”

as tracked by coindesk, Bitcoin is trading close to $37,000 per coin as of Thursday morning, while rivals Ethereum and Dogecoin are trading around $2,500 and 33 cents per coin respectively.

The partnership was first reported by The Wall Street Journal.