ForUsAll, a San-Francisco based 401(k) provider firm is enabling the option for some of their workers to invest in cryptocurrencies starting July,2021, a result of their deal with Coinbase. The workers will be provided with the option to invest up to 5% of their retirement plans in crypto, reported The Wall Street Journal on Thursday.

The workers have the option to choose from over 50 different cryptocurrencies to serve as investment vehicles. ForUsAll also plans to monitor their investments and its allocation. ForUsAll stated that this is the first 401(k) plan including cryptocurrencies. The firm has around 400 employer clients and did not disclose the number of clients who have chosen to opt for this option.

Alt 401(k)s is also looking forward to investing in mutual funds, real estate, governance funds, social and environmental funds and other investment vehicles as well. Similar to any asset purchased in 401(k), cryptocurrency purchases and its gains will be deferred with tax until the money is withdrawn from the account. They also provide a Roth option, which is tax-free when money is withdrawn.

Alternative asset classes which include small parts of cryptocurrency have become an important part of many institutional portfolios. Coinbase will monitor, maintain and secure the investments in cryptocurrency for the firm.

With $1.7 billion dollars in retirements funds and assets, ForUsAll is a small player in the 401(k) field, it currently manages the accounts of over 70,000 employees. Blockchain and cryptocurrency, these technologies can transform the economy. Education, combined with access to these assets and close portfolio monitoring prove to be beneficial. Investing in cryptocurrencies gains more interest, but it is extremely volatile. Even though cryptocurrency is not widely used in retirement plans, the firm wishes to broaden their reach and perhaps welcome evolution with it.