Mutual fund giant Fidelity Investments is on track to allow customers to add Bitcoin to their 401(k) savings plans, according to a recent report published by The New York Times.
The move could potentially be a watershed moment for cryptocurrency adoption in the U.S. given that Fidelity is the number one provider of pension plans in the country. The Boston-based investment giant manages the retirement savings of more than 20 million people.
There is growing demand for Bitcoin among plan sponsors, according to Fidelity’s Dave Gray.
It is worth noting that savings plans are highly regulated, which means Fidelity’s new initiative will likely attract plenty of regulatory scrutiny. Last month, the U.S. Department of Labor warned against putting crypto into people’s 401(k)s.
Moreover, the adoption of the new product will mostly depend on the willingness of employers to add Bitcoin to their workers’ retirement funds.
MicroStrategy, the business intelligence firm that is known as the biggest corporate holder of Bitcoin, has already signed onto the ambitious plans.
Fidelity was one of the first major financial firms to dip its toes into crypto. The Boston-based company started mining Bitcoin all the way back in 2014. In October 2018, it opened a separate cryptocurrency unit. In 2019, Fidelity also delved into the crypto custody business, which CEO Abigail Johnson lauded as a "big success." Last November, its Canadian subsidiary became the first regulated Bitcoin custodian in Canada.