Fidelity’s new ‘Digital Assets Account’ Will Meet Growing Employer Demand to Offer 401(k) Investors Access to Bitcoin

Fidelity Investments today announced the launch of its workplace Digital Assets Account, a product designed to help workers to allocate a part of their savings to bitcoin through the core 401(k) plan investment lineup. The move follows a rising demand from employers to offer the bitcoin as an option to 401(k) investors, with MicroStrategy (NASDAQ: MSTR) planning to be the first employer to use the product. (Fidelity Investments)

Fidelity and digital assets

The Digital Assets Account (DAA) will meet the growing interest in digital assets from 401(k) plan sponsors and participants. The DAA is a custom plan account that holds bitcoin and short-term money market investments to provide the liquidity needed for the account to facilitate daily transactions on behalf of the investor.

DAA offers a new way for employees to diversify investments in their retirement portfolio by adding digital assets, specifically, bitcoin.

Bitcoin held in the DAA is securely custodied by Fidelity Digital Assets, an institutional-grade platform that offers custody and trade execution for digital assets to institutional investors.

In 2020, Fidelity’s digital asset management business launched a private bitcoin fund that is currently available to accredited investors.

Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity Investments, said: “There is growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies.”

Gray added that the new offering was a sign of Fidelity’s belief in the promise of blockchain technology for the financial industry’s future.

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