Fidelity Investments Strengthens Its Leading Position as a Provider of Digital Assets with the Launch of the Industry’s First Bitcoin Offering for the Basic 401(k) Investment Range | News

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BOSTON–(BUSINESS WIRE)–April 26, 2022–

Fidelity Investments®, one of the world’s largest financial services providers, today announced the launch of Fidelity Workplace Digital Asset Account (DAA), the industry’s first offering that will allow individuals to direct a portion of their retirement savings into bitcoin through the 401(k) plan’s suite of investments. The innovative new offering, which MicroStrategy plans to add to its 401(k) plan later this year, will be widely available to employers mid-year.

Enabling interested employers to offer their employees access to bitcoin through an investment option in their major 401(k) retirement plans on Fidelity’s secure platforms is an important step in advancing the Fidelity’s position as a provider of holistic digital asset services. Fidelity began exploring blockchain technology in 2014 with bitcoin mining and in 2018 launched its first commercial offering: Fidelity Digital Assets SM, a 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 which is currently available to accredited investors.

“As a leader in digital assets, we are thrilled to be the first to offer employers exposure to bitcoin for the basic 401(k) lineup that reflects our commitment to meeting their evolving needs and our belief in the promise of blockchain technology for the future of the financial industry,” said Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity Investments. “Plan sponsors are increasingly interested in vehicles that allow them to provide their employees with access to digital assets under defined contribution plans, as well as individuals willing to incorporate cryptocurrencies into their long-term investment strategies.”

The announcement of Fidelity’s digital asset workplace account represents the company’s ongoing commitment to evolve and expand its digital asset offerings amid growing demand for digital assets across all industries. investor segments. According to Fidelity Digital Assets 2021 Institutional Investor Digital Asset Study, 30% of US institutional investors surveyed would prefer to buy an investment product containing digital assets. Meanwhile, Fidelity estimates that around 80 million US individual investors currently own or have invested in digital currencies. 1

MicroStrategy 2, the leading provider of business intelligence solutions, plans to be the first employer to offer DAA in its retirement plan.

“MicroStrategy is excited to work with Fidelity to become the first public company to offer its employees the ability to invest in bitcoin through our 401(k) program,” said Michael Saylor, president and CEO of MicroStrategy. . “Teaming up with companies like Fidelity that are innovating in bitcoin for businesses is important to us, as is the continued development of the bitcoin ecosystem for institutional investors.”

Loyalty workplaceDigital Asset Account – How it Works

The new proprietary offering will allow employees who are comfortable with the risks and volatility of cryptocurrency to invest in bitcoin through a digital asset account as part of the basic range of their 401(k) plan ( k). The DAA is a custom plan account that holds short-term bitcoin and money market investments to provide the necessary liquidity to the account to facilitate day-to-day transactions on behalf of the investor. Bitcoin in the DAA will be held on the Fidelity Digital Assets custody platform to ensure institutional-grade security. Plan sponsors who choose to offer DAA set employee contribution and redemption limits in the account. Employees will benefit from a fully integrated retirement plan, digital experience and training to help them make informed decisions.

Newfront 2, a provider of retirement consulting services, said DAA could help meet a growing need among its customer base.

“Increasingly, we are seeing interest from major employers in adding digital assets to their 401(k) plan,” said Chris Call, EVP Retirement Services, Newfront. “As companies consider alternative investment options in their plan design, we believe digital assets are worthy of consideration.”

Employers can expect additional updates in the coming months as Fidelity continues to grow its digital asset platform, leveraging blockchain technology and expanding use cases beyond that. bitcoin.

About Fidelity Investments

Fidelity’s mission is to inspire a better future and deliver better results for the customers and businesses we serve. With assets under administration of $11.3 trillion, including discretionary assets of $4.2 trillion as of March 31, 2022, we are focused on meeting the unique needs of a diverse set of clients. Privately owned for more than 75 years, Fidelity employs more than 57,000 associates who are focused on the long-term success of our clients. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

About Fidelity digital assets

Fidelity Digital Assets℠ offers a comprehensive enterprise-grade platform to secure, exchange and support digital assets. A business of Fidelity Investments, one of the world’s largest and most diverse financial services providers, Fidelity Digital Assets combines the operational and technical capabilities of the broader Fidelity organization with dedicated blockchain expertise to deliver a differentiated offer to institutional investors. Learn more about www.fidelitydigitalassets.com.

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Investing involves risk, including risk of loss. Digital assets are speculative and highly volatile, can become illiquid at any time, and are intended for investors with a high risk tolerance. Investors in digital assets could lose the entire value of their investment.

Fidelity Digital Asset Services, LLC, a New York State Licensed Trust Company Limited (NMLS ID 1773897) provides custodial and trading services for digital assets.

Fidelity Workplace Services LLC provides recordkeeping, trustee and custodial services to employer-sponsored retirement plans.

Registered investment products (including mutual funds and ETFs) are offered by Fidelity Brokerage Services LLC (FBS). FBS does not offer digital assets or provide trading or custody services for such assets.

Fidelity Digital Assets and the Fidelity Digital Assets logo are service marks of FMR LLC.

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© 2022 FMR LLC. All rights reserved.

1 Fidelity Market Research, conducted 11/29/21 through 12/01/21, US residents 18 years and older.

2 Quotes and information relating to MicroStrategy and Newfront used with permission.

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KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS

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SOURCE: Fidelity Investments

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PUBLICATION: 04/26/2022 08:30 / DISK: 04/26/2022 08:32

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