International financial services Fidelity added Bitcoin as an option for 401(k) plans. It is the first major retirement-plan provider to offer this possibility.
A 401(k) plan is a plan for retirement savings offered by many employers in the US. It is named after the Internal Revenue Code. The employee who signs up for a 401(k) plan agrees that some percentahe of each paychecki will go directly to an investment account.
Fidelity is the largest provider of 401(k) plans in the US. The new offering will allow 23,000 employers that use Fidelity to administer their retirement accounts by mid 2022.
The head of workplace retirement offerings and platforms at Fidelity Investments, Dave Gray said that there is a growing interest from plan sponsors for include digital assets into their long-term investment strategies.
This step from Fidelity which has around $11 trillion in assets under administration can boost the popularity of crypto and help the industry to become more mainstream.