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AdvisorPeak, Prime Trust Add Crypto Tools for Portfolios

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What You Need to Know

  • As part of a deal with Prime Trust, AdvisorPeak users can now custody, trade and rebalance Bitcoin and other digital assets.
  • The lack of tools is one reason why the wealth management sector is so underexposed to Bitcoin, a Prime Trust executive says.
  • Features include the ability to trade fractional shares between U.S. dollars and crypto.

AdvisorPeak has added cryptocurrency and other digital assets to its trading software for advisors as part of a collaboration with Prime Trust, a firm that describes itself as a “technology-driven trust company.”

Almost 1,000 advisors leveraging AdvisorPeak can now custody, trade and rebalance Bitcoin and other digital assets on behalf of their clients through the new capability, the companies said in a joint announcement.

“The wealth management industry is horribly underexposed to #bitcoin,” Kevin Lehtiniitty, chief strategy officer at Prime Trust, tweeted on Wednesday. “Part of that is certainly due to a lack of tools aimed towards that market and part of it is people still burying their heads in the sand. Hopefully the work we’re doing with @AdvisorPeak helps fix this.”

As a maker of all-in-one, application programming interface- (API)-based financial infrastructure tools, Prime Trust is providing AdvisorPeak clients with services tied to custody, payment processing, Bank Secrecy Act of 1970 compliance, asset liquidity and transaction settlement, the companies said.

Prime Trust’s proprietary technology allows AdvisorPeak’s advisors to hold various different assets from fiat currencies (government-issued currency not backed by commodities), to Bitcoin and other digital assets, to real estate and public and private securities, they said.

“The demand for digital assets is widespread and growing,” according to Damon Deru, AdvisorPeak CEO. “Unfortunately for many advisors, their legacy systems are inadequate at handling the nuances of digital currencies — especially fractional shares,” he said in a statement.

“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,” he explained.

More than 80% of advisors received questions related to crypto in 2020, the companies said, citing the findings of a recent Bitwise survey.

The companies also stated that advisors will now have the ability to “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,” the two firms explained.

Other new features that AdvisorPeak clients can now leverage include the ability to trade fractional shares between U.S. dollars and Bitcoin, Ether and Tether, as well as transfer assets between accounts or to any customer on the network in real-time, the companies said.