Cryptocurrency News

Bitcoin IRA, BitGo Launch Insured IRA Composed Entirely of Crypto

Bitcoin IRA, a digital asset IRA company, has launched the first self-directed cryptocurrency IRA.

Created through a partnership with BitGo Trust, the retirement account features $100 million in insurance protection, 30 percent lower wallet fees, and the ability for clients to diversify their holdings in 12 digital assets.

As a self-directed investment, “the authority lies with account owner, who directs us on what to hold,” said Dick Corcoran, CEO of BitGo, who left retirement to work on this partnership and product. “The rules are identical to a traditional IRA, the only difference is the asset is crypto instead of stocks, bonds, etc.”

Bitcoin IRA began offering retirement accounts in 2016, and has built more than 5,000 hybrid crypto IRAs. Since launch, the company has processed over $300 million in digital asset transactions, according to its own figures.

Bitcoin IRA registered as a Third-Party Administrator for BitGo, through its Digital IRA division to handle all administrative responsibilities including transfer applications, compliance, and transaction monitoring.

BitGo will protect these new securities by providing cold storage “maintained in a secure, bank-quality vault offline in South Dakota,” with a clearly defined protocol on who can access the holdings, Corcoran said. Apart from physical security, Corcoran claims that the company also exceeds the regulators’ demands for the amount of capitalization and insurance behind the assets.

While he was unable to disclose those figures, but said the company acts as a fiduciary. “BitGo is a master engineer of risk and security, whether for largest institutional investor or someone beginning their retirement savings,” said Bitcoin IRA COO Chris Kline. “The whole spectrum will benefit.”

These investors are “very diverse. Not the typical archetype seen for traditional assets,” he said.

Every generation is apparently interested for different reasons, while Kline is proud of the general parity between male and female investors, as well as with the geographical spread. “We have clients in every state of the union.” “Except New York,” he adds after pausing to reflect on the requirement in the state for the so-called BitLicense.

Opening an account is instantaneous, he explained, but, because the firm “can’t automate compliance,” it may take more than a day to pass know-your-customer procedures. Additionally, funding one’s account can take as long as 10 to 15 days depending on the client’s current custodian.

Kline suggested that these new IRAs move at the speed of the internet and are a “solution raised from digital era built for digital era.”

Coin jar image via Shutterstock

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