Digital asset issuer Securitize has facilitated what it says is the first direct IRA investment in security token offerings.
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.
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.
"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.
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.
UPDATE: While a press release said AltoIRA purchased the tokens, AltoIRA only facilitated the purchase on a customer's behalf.
Securitize Opens IRAs to Digital Securities Investors With Partnership
Published on Jan 14, 2020
by Coindesk | Published on Coinage
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