Earlier this week, Hong Kong-based asset custodian Legacy Trust launched a digital asset-backed pension plan. The company said it is the world’s first digital asset pension plan whose asset portfolio will include cryptocurrencies and traditional investments.
The company has a 27-year track record as a custodian, and the funds are fully compliant with Hong Kong regulations.
Legacy Trust wants to attract investors, employers and employees in the digital asset space with this pension plan. From a tax perspective, pension funds have some exemptions and are a lucrative option for a long-term investment. Legacy Trust clarified that the pension plan will be available to anyone across the world, provided that they are gainfully employed.
“We envisage that this will appeal to businesses who are active in the digital assets space, and who want to offer additional benefits to their employees to retain talent and recognize achievement,” said Vincent Chok, CEO of Legacy Trust.
Pension funds are known to invest conservatively, to safeguard the retirement money of individuals. To invest in digital assets or cryptocurrencies is unusual, but not unheard of. With Legacy Trust, a large portion of an individual’s pension may be backed by digital assets like crypto.
The company has also partnered with cryptocurrency wallet provider Ledger to provide custody services for cryptocurrency owners. The two have since launched the Ledger Vault service.
Even some big pension funds are trying out digital asset investments, albeit via funds. Earlier this year Morgan Creek Digital launched the Morgan Creek Blockchain Opportunities Fund to invest in digital assets. It secured $40 million in investment with the largest contributions from Fairfax County Police and Fairfax County Employee’s Pension plans.
