Prime Trust makes it easy for wealth management professionals to advise on and offer their clients access to crypto
Bitcoin is gaining attention as an asset class that can protect wealth over the long run.
On Monday, June 14th, Paul Tudor Jones told CNBC’s Squawkbox that he likes Bitcoin as a portfolio diversifier, noting that he wants 5% of his portfolio in Bitcoin. Recently, the Bank of NY Mellon said that one of its exchange-traded funds was negatively impacted by its lack of exposure to Bitcoin and crypto stocks.
Crypto and digital assets provide useful portfolio diversification for both retail and institutional investors. Registered investment advisor (RIA) platforms, also known as wealth tech, can support this increasing desire for exposure to alternative assets by providing RIAs access to cryptocurrencies and allowing them to rebalance portfolios on platform.
To do this, wealth tech firms need on and off ramps into crypto and digital assets.
One-stop shop for financial infrastructure for wealth management
At Prime Trust, we make it possible for wealth management professionals to advise on and offer access to cryptocurrencies. Here’s what you need to know to start offering cryptocurrencies to your clients today.
The typical solution involves five of our core financial services:
Payment Rails: Prime Trust’s payment rails support RIA clients with simple and effortless funds processing. This includes retail rails such as ACH and institutional rails such as wires and signet transfers.
Qualified Custody and Sub-custody: Our custody solutions support a variety of assets and account types including custodial accounts, IRAs, and Asset Protection Trusts. Prime Trust’s qualified custody provides secure and regulated storage of cryptocurrency and digital assets with ISO certification, SOC reporting and auditing, and regulated external audits. For clients who want custody that is specific to cryptocurrency to reduce business risk, sub-custody is a great option.
Trading and Liquidity: This API solution enables you to offer crypto-to-fiat trading pairs. We source from a deep pool of liquidity across a number of leading exchanges and market makers to provide trading on a riskless principal basis.
Settlement: Prime Trust instant settlement is a fast, secure, and easy method of transfer between any Prime Trust accounts. Securely send fiat currencies, traditional assets, or crypto in real time, any time.
Compliance: Our compliance API brings identity verification screening for AML and KYC entirely online to minimize friction and streamline the authentication process. The Prime Trust KYC program integrates into a wide range of data sources including watch lists, fraud databases, and document verification services to ensure the highest quality results at tremendous scale.
Putting this in action: how we helped AdvisorPeak be a first to market asset-agnostic wealth management platform
In April 2021, AdvisorPeak unveiled its first digital asset trading solution for independent advisors. The announcement was underpinned by a collaboration with Prime Trust to bring crypto and digital asset rebalancing to the wealth tech platform.
AdvisorPeak identified that it was important for RIAs to find a professional and reliable method to access, manage, and advise on crypto as the customer demand for these assets heats up. We helped them launch the first-to-market portfolio management and rebalancing platform that supports crypto and alternative digital assets alongside traditional securities.