After completing a one-year test, Digital Asset Investment Management (DAiM), a US-based crypto investment advisor, launched what it says is the first company-sponsored retirement plan supporting bitcoin.
DAiM will serve as an advisor and trustee while helping companies create a 401 (k) plan that allows for a maximum allocation of up to 10% in bitcoin as well as varying degrees of exposure to traditional assets, according to an announcement Thursday.
Cryptocurrency associated with the Employee Retirement Income Security Act (ERISA) compliant plans will be kept in the cold room of Gemini Trust, regulated in New York.
“From the moment we were approved by the State of California in June 2018, we saw an incredible inbound demand from individuals willing to invest bitcoin in 401 (k) s,” DAiM said. in the ad, adding that the inability of conventional plans to keep up with inflation is bad business for savers.
Individuals can choose to take more bitcoin exposure after consulting with DAiM, and will be able to transfer pension bitcoins when changing jobs. Businesses can switch to their current provider’s Bitcoin plans if they choose.
Companies interested in offering the new product to employees in 2021 must have the plan in place by mid-December 2020, DAiM said.
“We believe [b]itcoin has demonstrated that it has a place in the modern wallet and that individuals should have the ability to ‘come out of zero’ and invest directly through their retirement account, ”the company said.