Home News Pension provider ForUsAll partners with Coinbase to offer 5% exposure to crypto

Pension provider ForUsAll partners with Coinbase to offer 5% exposure to crypto


Coinbase has partnered with ForUsAll, which specializes in serving American retirement accounts. They will be able to invest up to 5% of assets from such accounts in Bitcoin, Ethereum, Litecoin and other cryptocurrencies (more than 50 other digital tokens).

ForUsAll manages 401K plans for 400 employers and doesn’t specify how many interested in the new option. A 401K plan is an employer-sponsored defined contribution retirement account in the United States. The company manages $ 1.7 billion in assets, a fraction of the $ 22 trillion US pension market. Nevertheless, experts note an increase in interest in transferring pension money into alternative assets.

Spark Street Digital President Paul Selker described ForUsAll’s offering as attractive. He expects it to help increase the return on investment from these accounts for its 14 employees. He also noted that the approach of Coinbase and ForUsAll will not allow them to invest all their money in Dogecoin for quick profits.

Clients can use 5% of the account balance

ForUsAll explained that customers can use both 5% of the account balance and new receipts to buy cryptocurrencies. There is an institutional platform Coinbase for this, which supports about 50 digital assets. In addition, clients will be sent notifications with a call to transfer profits into stocks or bonds if the share of cryptocurrencies in their portfolios exceeds 5%. In this case, it will not be possible to invest additional money from the account. However, they will still be able to convert new receipts into cryptocurrency.

Schulte says this is not a regulatory requirement, but instead reflects ForUsAll’s advice on investing for retirement. Advice that recommends spending more money on stocks and bonds and less on more exotic investments.

Note that Coinbase Institutional will protect and manage the crypto assets acquired by employees.

In terms of commissions, employees who choose to buy cryptocurrency will pay 0.5% commission at the time of purchase. As well as an annual commission of less than 1%.

Will the ForUsAll announcement increase the volume of investments in cryptocurrency?

More broadly, the new 401K cryptocurrency offering reflects a recent trend. Where investors of all stripes are looking for higher returns in the form of so-called “alternative investments”. These include cryptocurrencies, as well as stocks such as private art companies that were once only available to very wealthy investors but have since become more accessible, thanks in part to new technology-based financial platforms.

ForUsAll and Coinbase’s announcement also makes a difference for the larger cryptocurrency market. If other 401K providers, who collectively control trillions of dollars in assets, offer similar products, it could significantly increase the amount of cryptocurrency investment and likely drive prices up.

If the offer proves popular, it’s likely that other 401K providers in the US, including industry giants like Fidelity and Schwab, and startups like ForUsAll, will follow suit. The ForUsAll offering also reflects how professional crypto products are becoming available to a wider segment of Americans.

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