Share this article

Securitize Opens IRAs to Digital Securities Investors With Partnership

Digital asset issuer Securitize has facilitated what it says is the first direct IRA investment in security token offerings.

Updated Sep 13, 2021, 12:08 p.m. Published Jan 14, 2020, 1:03 p.m.
Securitize cofounder and CEO Carlos Domingo (Credit: Securitize)
Securitize cofounder and CEO Carlos Domingo (Credit: Securitize)

Digital asset issuer Securitize has facilitated what it says is the first direct IRA investment in security token offerings (STOs).

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters

A customer of alternative investments gateway AltoIRA purchased an initial investment in security tokens representing CityBlock Capital’s $20 million venture fund, with tokens issued by Securitize. The arrangement is set to open new opportunities for retirement account investors seeking exposure to digital securities, an alternative investment, said Securitize CEO Carlos Domingo.

“At the moment [digital securities] are not widely distributed,” Domingo said. “That makes it more complicated for investors to access them, creating a bad cycle.”

Before now, retirement investors were hard-pressed to find entry points into the high-risk, high-reward asset class AltoIRA CEO Eric Satz says has regularly outperformed the market.

Advertisement

“The idea of investing in alternative assets, much less a security token, would be anathema to traditional organizations,” Satz said, referring to companies such as Fidelity, TD Ameritrade and Schwab.

To overcome the institutional blockade, AltoIRA offers individuals those services as a self-directed Individual Retirement Account custodian. In effect this means AltoIRA facilitates trades and is the asset custodian, while the individual makes all investment decisions.

That introduces risk. But Satz said retirement account investors are up for the effort, and are not ones to invest in asset classes of any type without “doing their homework.”

“What we're trying to do is open the doors and provide access to the everyday investor, the same access to higher assets” that institutional investors have, Satz said.

In the case of CityBlock Capital, the tokens will represent CityBlock’s ventures fund NYCQ, a private fund with $10 million allocated to institutional investors. NYCQ includes holdings in CoinBase, Bakkt, Tagomi and Nomics.

UPDATE (Jan. 14, 14:55 UTC): While a press release said AltoIRA purchased the tokens, AltoIRA only facilitated the purchase on a customer's behalf. This article has been updated to clarify this distinction.

Meer voor jou

This article is created to test tags being added to image overlays

Consensus 2025: Zak Folkman, Eric Trump

Dek: This article is created to test tags being added to image overlays

Wat u moet weten:

  • Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.