AdvisorPeak today became the first wealthtech solution for independent advisors to deliver trade management solutions for digital assets.
Nearly 1,000 advisors leveraging AdvisorPeak can now custody, trade, and rebalance digital assets on behalf of their clients through a collaboration with Prime Trust.
As the leading provider of all-in-one, API-based financial infrastructure for fintechs, Prime Trust provides AdvisorPeak’s customers with a range of services spanning custody, payment processing, BSA compliance, asset liquidity and transaction settlement. Prime Trust’s proprietary technology enables AdvisorPeak’s advisors to hold a variety of different assets from fiat currencies, to bitcoin (BTC) and other digital assets, to real estate and public and private securities.
“The demand for digital assets is widespread and growing. Unfortunately for many advisors, their legacy systems are inadequate at handling the nuances of digital currencies - especially fractional shares,” said Damon Deru, chief executive officer at AdvisorPeak. “We’re really excited to continue to deliver on our industry-wide promise of bringing innovative and game-changing solutions and partnerships to the wealth management community. By unlocking custodial access to the crypto universe, our advisors can now hold digital assets in a variety of account types from personal and institutional custodial accounts, to tax advantaged accounts such as IRAs, to various forms of asset protection trusts - all of which can be traded and rebalanced at the household level.”
More than 80% of financial advisors received questions related to crypto in 2020 according to a recent survey from Bitwise, a number that will rise. With many clients investing in digital currencies on their own, advisors now have the ability to bring digital assets into their purview as part of a balanced investment portfolio and engage with investors on strategies and how these investments fit into their broader investment goals and risk appetite. It also allows advisors to set parameters as they would with a traditional security such as monitoring for drift.
“As Wall Street continues to embrace digital assets and cryptocurrency adoption rates accelerate in an online world, investment advisors recognize they need to leverage new technology to provide their customers access to these new markets. Prime Trust allows traditional investment advisors to innovate and meet the market demand,” said Tom Pageler, CEO of Prime Trust. “We’re excited to collaborate with AdvisorPeak and integrate with their enterprise-class portfolio management tools to open up digital asset trading to the wealth management industry.”
Additional features AdvisorPeak customers can now leverage include the ability to trade fractional shares between USD and BTC, ETH, and USDT, as well as transfer assets between accounts or to any customer on the network in real-time.