- Fidelity Investments is launching a 401(k) product offering that allows individuals to include bitcoin in their retirement plan.
- Bitcoin will be held in the Fidelity Digital Assets custody platform as a security measure.
- MicroStrategy will be the first publicly traded company to offer the new product.
Fidelity Investments is providing MicroStrategy employees access to bitcoin through a new 401(k) offering, which will see the business intelligence company become the first employer to leverage the new product, according to a press release.
MicroStrategy CEO, Michael Saylor, commented on the news stating: “MicroStrategy looks forward to working with Fidelity to become the first public company to offer their employees the option to invest in bitcoin as part of our 401(k) program.”
The program known as Fidelity’s workplace Digital Assets Account (DAA) will be the industry’s first-offering of its kind. Individuals will be able to allocate a portion of their savings into bitcoin through the core 401(k) investment line-up. Bitcoin in the proprietary DAA will be held in the Fidelity Digital Assets custody platform in a measure meant to provide institutional-grade security.
“As a leader in digital assets, we are thrilled to be the first to offer employers exposure to bitcoin for the core lineup of 401(k)s that reflects our commitment to meeting their evolving needs and our belief in the promise of blockchain technology for the financial industry’s future,” Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity Investments said in the release.
According to a survey conducted by Fidelity, 30% of U.S institutional investors prefer buying an investment product that contains cryptocurrencies like bitcoin. In the same breath, Fidelity estimates over 80 million investors in the U.S currently own or have invested in the asset class, showing clear signals for existing and growing market share for institutional investors.
Companies vying for their piece of the growing market share of cryptocurrencies like bitcoin will continue to rise. Saylor stated “Teaming with companies like Fidelity that are innovating in bitcoin for corporations is important to us, as is furthering the development of the bitcoin ecosystem for institutional investors.”
Fidelity notes in the press release that employers can expect further updates on the program in coming months.