Investing

Platform for Employees to Add Crypto to their 401(k) Plans Live in 50 Companies

401(k) provider ForUsAll announced today that 50 of its customers are now allowing crypto investments through Alt401(k), the first retirement platform that allows users to diversify their portfolios and invest in digital assets. A further 100 companies are expected to add the feature in the coming weeks.

ForUsAll Introduces First-of-its-Kind 401(k) Platform That Enables Access to Crypto

ForUsAll, a San Francisco-based 401(k) plan provider, announced Thursday that 50 of its clients are live with the Alt401(k), the first-of-its-kind retirement platform that allows users to invest a part of their 401(k) savings into cryptocurrencies. The move makes ForUsAll among the first retirement providers to enable crypto investments.

Some companies that have enabled crypto investments for their clients through the new platform include Stacks Foundation, Compass Mining, NuHire, and BOND, among others. ForUsAll said that more than 100 additional companies are expected to begin offering the feature in the coming weeks.

“We believe in providing our employees every available opportunity to save for their financial future, and the Alt401(k) from ForUsAll gives them the tools to do just that. We believe cryptocurrency and blockchain technology possess great potential for the future.”

– Brittany Laughlin, Executive Director at Stacks Foundation

Alt401(k) Users Able to Allocate 5% Balance to Crypto

The Alt401(k) platform allows employees to diversify their portfolios from traditional 401(k) mutual funds and invest in high-growth assets like crypto. Other investment options include stocks, bonds, and exchange-traded funds (ETFs).

When it comes to crypto, employees can allocate up to 5% of their 401(k) balances into an account that provides access to a select number of cryptocurrencies like Bitcoin, Ethereum, Solana, and more. The platform alerts users once their crypto allocation exceeds 5%, allowing them to reallocate the funds.

“We spent considerable time balancing the needs of sophisticated employees that demand the freedom to invest how they see fit with much-needed protections for less-knowledgeable employees.”

– Jeff Schulte, Chief Product Officer at ForUsAll

The launch comes amid a steep crypto market downturn as inflation and aggressive interest rate hikes hurt the appeal of risk assets. Prices of the top two cryptocurrencies, BTC and ETH, have plummeted significantly in recent months.

Like ForUsAll, Fidelity Investments unveiled a similar feature earlier this year that allows investors to allocate funds to bitcoin through their 401(k) plans. The financial services company declined to say how many companies provide access to crypto.

This article originally appeared on The Tokenist

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