Prime Trust Launches Beta Program for Crypto IRA

In an industry first, Prime Trust uses a single application programming interface (API), aiming to “to make the end user experience very frictionless,” chief product officer says

article-image

Source: Prime Trust

share

key takeaways

  • Financial infrastructure provider throws its hat in the ring for a retirement account with crypto exposure
  • With the rise of trading apps and crypto interest, this is a product investors have been asking for, expert says

Financial infrastructure provider Prime Trust is following the money, and in the US, it’s in retirement funds. 

“Half of US wealth is in retirement funds,” Sara Xi, chief product officer at Prime Trust, said. “Even if we have 1% penetration, we’re talking about five hundred to $600 billion.” 

Sara Xi
Sara Xi

Prime Trust announced the launch of its beta program for the Prime Trust Crypto IRA, a first-of-its-kind retirement account with a single application programming interface (API), on Tuesday. The new product allows users to onboard, fund accounts, and invest retirement funds in cryptocurrency, a structure clients prefer due to the tax benefits, Xi said.

“We see that traditional registered investment advisors want to offer crypto, just as another investment vehicle, to their end users,” Xi said. “We also see that crypto wallet apps and onramps have been doing quite well with crypto trading, but their customers want to take advantage of the tax benefits to invest some of their retirement funds into crypto.”

Through this new product, Prime Trust will offer traditional and ROTH IRAs and digital asset insurance for integrators and their users. Security has been a top concern for clients, Xi said, and the product will offer a warm-hot storage architecture supported by multi-party computation technology.

The Prime Trust Crypto IRA is backed by the company’s institutional grade financial API technology, Xi said, which includes compliance, custody, payment rails, crypto trading and settlement resources. 

The beta launch comes as investors continue to push for ways to diversify into the asset class, Xi said. Bitcoin and ether are currently the most popular in terms of tokens, she added. 

“The IRA account is a very recent interest area that we see all of the end consumers and our customers of our clients are interested in,” Xi said. “It’s really the fact that crypto is now a mainstream investment.” 

New and existing Prime Trust clients can now apply to join the beta launch, and access will open to those accepted on June 1, 2022. The company hopes to have the product in the hands of end users by early fall 2022. 

Prime Trust’s IRA product comes less than a year after ForUsAll, a retirement investment platform for small businesses, partnered with Coinbase to launch its Alt 401(k), an investment vehicle that allows employers to over crypto exposure through 401(k) accounts. 

Xi expects that the industry will only continue to grow, and she looks forward to the expansion. 

“It’s a huge market, not crowded at all, and we welcome all sorts of competition,” she said. “We are the one provider that harnessed the automation from API and complimented it with a full operational team…our goal is to make the end user experience very frictionless.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings

article-image

This week’s biggest funding round saw Jump Trading, JPMorgan contribute to the round

article-image

Plus, a layer-1 for intellectual property is launching and Farcaster users peaked

article-image

Crypto still hasn’t shaken one of its most garish primordial tails — funny stories about fraud

article-image

Plus, publicly traded crypto companies had a pretty eventful news week

article-image

Committee members directed more questions to Christy Goldsmith Romero, who could soon be leading one of the more troubled federal agencies