By Staff Writer
Hong Kong-based crypto custody service provider Legacy Trust is launching the world’s first digital asset pension plan, a voluntary pension plan available to employers and the self-employed, where the contributions and underlying asset portfolio can include digital assets alongside fiat currencies.
The digital asset pension is structured as a non-vested trust, it’s fully compliant with Hong Kong regulations and it’s available to members residing anywhere in the world, provided that they are gainfully employed, according to a statement released on Wednesday (September 4).
The pension is funded by voluntary contributions made by an employee, employer or deducted directly from a salary, on a frequency of their choice. It is then paid out when the member retires, or to their beneficiaries should they pass.
Vincent Chok, the chief executive of Legacy Trust, believes that the product will appeal to businesses who are active in the digital assets space. Long-term digital asset investors are also expected to find the offering attractive as the time horizon makes the pension suitable for inclusion in a mixed-portfolio or provides a solely digital-asset pension.
The new product addresses various tax concerns for digital-assets holders and eliminates the temptation to sell during price dips thanks to limitations on accessing the capital assets.
Founded in 1992, Legacy Trust was initially established as a traditional pension and family trustee. As a part of its entry into digital assets, Legacy recently collaborated with Ledger on an institutional-grade digital asset storage solutions – Ledger Vault – and offers custody to TrustToken’s TrueHKD stablecoin reserves.