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Equity Trust Launches Digital Asset Platform For Cryptocurrency IRA Investors
Platform Offers Quick Order Settlement, Integrated Storage, Low Fees – Plus, Investors Could Reap Tax Advantages
By: Equity Trust Company
The new platform simplifies the digital currency investment process by providing an easy-to-use interface enabling both individual investors and institutional partners, on behalf of their clients, to quickly place orders for digital currency using tax-advantaged funds from IRAs.
"The digital asset platform marks the most recent in a series of technology investments made by Equity Trust," said Dave Allen, Chief Operating Officer of Equity Trust Company. "We've invested in technologies that align with our broader strategy of delivering innovations and industry-leading capabilities that truly optimize client value by speeding up the investment timeline and simplifying the process."
"Recognizing the demand from clients and other investors to use their IRAs, and the potential tax benefits they offer to investing in digital currencies,"
The platform integrates a client's Equity Trust account with fully redundant 'cold storage' facilities – a secure method of long-term storage of digital currency – eliminating the customer risk associated with holding their own 'keys'.
As long as IRS guidelines are followed, investment gains from digital currency generated in the IRA may be tax-deferred, a potential benefit and differentiator for those investing in digital currency. For example, in 2017 Bitcoin prices surged and many investors profited, but it also created a significant tax impact. If the investments were made through an IRA, taxes could have possibly been mitigated or deferred until retirement.
Using the Equity Trust Digital Asset Platform, investors can buy and sell Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin and Ripple on a trade date plus one basis (i.e. for sale transactions cash is available the next day). Digital currency purchase/sell orders are facilitated with a digital currency liquidity provider or exchange.
"After the purchase, the digital currency is held in a secure 'cold storage' vault that is not connected to the Internet," Allen said. "Our industry leading security partner uses physical and cybersecurity best practices, to create a secure vault for these digital assets."
Investors can open an account online (using e-signature capabilities)
About Equity Trust Company
Equity Trust Company is a financial services company with $25 billion in assets under custody and administration (as of 12/31/17) that provides these services for individual investors, financial professionals and institutions to invest in traditional and alternative asset classes, including real estate, notes, private equity, precious metals and digital currencies. The Equity Trust family of companies offers retail and institutional custodial services with individual retirement accounts, back-office solutions for RIAs, brokerage services, directed trustee services and more. Individual investors visit www.trustetc.com for more information. Financial professionals visit www.equityinstitutional.com for more information.
Equity Trust Company is a passive custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.
Prior to making any investment decisions, please consult with the appropriate legal, tax, and/or investment professionals for advice. As a self-directed IRA custodian, Equity Trust Company will not provide investment advice or risk assessment of any investment. The digital currency market may experience a high degree of volatility and clients should consult with an investment professional before any investment is made.