Coinbase and Wall Street Converge as Policy Paves Way for Crypto Retirement Plans

Announced on Friday through a press release, the agreement will allow accredited investors to hold a Bitcoin yield fund inside a tax-deferred individual retirement account (IRA), combining institutional asset management with self-directed crypto investing.

IRAs and employer-sponsored 401(k) programmes are the main savings vehicles for US investors, offering long-term tax advantages until a specific retirement age. Total US retirement assets stood at $45.8tn as of June 2025, according to the Investment Company Institute.

Policy shift

The collaboration follows an executive order signed in August by the Trump administration directing regulators to allow alternative assets, including cryptocurrencies, in retirement plans. The order reverses earlier Department of Labor guidance from 2022 that discouraged crypto exposure in 401(k) plans on fiduciary grounds.

Under the new arrangement, iTrustCapital clients can subscribe to Coinbase Asset Management’s Bitcoin yield strategy, which is designed to outperform Bitcoin by generating additional income while retaining the tax advantages of an IRA.

“Bitcoin’s role as pristine collateral creates opportunity for income generation and higher long-term compounded returns,” said Anthony Bassili, president of Coinbase Asset Management.

Institutional participation

The Coinbase–iTrustCapital initiative is part of a wider effort by financial institutions to integrate alternative assets into retirement structures. In 2022, Fidelity Investments became the first major asset manager to permit Bitcoin exposure within employer-sponsored 401(k) plans, a development that opened the door to crypto-based retirement savings options.

In recent months, asset manager Blackstone has created a unit to channel 401(k) funds into alternative asset markets, including cryptocurrencies and real estate. Meanwhile, Goldman Sachs and T. Rowe Price announced in September that they are developing products to introduce alternative and tokenized holdings into retirement accounts by the end of the year.

Crypto-native firms are also moving into this space. Swan Bitcoin, in partnership with Equity Trust Company, now offers self-directed Bitcoin IRAs with onchain transparency and control, signaling the gradual entry of decentralized infrastructure into a regulated retirement context.

New opportunities, persistent risks

For iTrustCapital, which manages more than $7bn in crypto assets, the Coinbase partnership extends its platform beyond spot crypto into yield-oriented strategies. The product is expected to launch later this year or in early 2026.

Together, these developments indicate that digital assets are becoming increasingly accepted within the US retirement framework. With support from policymakers in Washington and growing participation from both Wall Street and the crypto sector, the boundary between traditional and digital wealth management is beginning to narrow.

Caution remains, however. The US Government Accountability Office warned in a December 2024 report that cryptocurrencies may pose particular risks within retirement portfolios.

“While all investments have risks, our analysis shows that investment in selected crypto assets is uniquely volatile. The potential for high returns can come with considerably high risk,” the agency said.

Cryptocurrencies are still far from becoming a standard feature of US retirement plans, but the current wave of institutional and regulatory activity suggests that future portfolios may include not only stocks and bonds but also tokenized and yield-bearing crypto assets.