What happened?
Crypto exchanges Coinbase and OKX are targeting Australia’s $2.8 trillion pension pool, known as superannuation, offering products that steer retirement funds into cryptocurrencies. This comes after the U.S. signing of the 401(k) Act, causing global crypto exchanges to eye retirement savings as a significant entry point for digital assets. Superannuation is seen as a lucrative sector with a predicted growth to reach $11.2 trillion by 2043.
Who does this affect?
This development primarily affects Australian citizens who have retirement savings in the superannuation scheme. Cryptocurrency companies like Coinbase and OKX also stand to gain from this move. It has broader implications for the global retirement savings and pension industry, potentially prompting a shift towards more widespread adoption of digital assets within retirement portfolios.
Why does this matter?
This matters because the involvement of large-scale pension funds could potentially lead to considerable growth in the crypto market. However, there’s a risk that the investment volatility associated with cryptocurrencies might expose the system to shocks, especially during crises. The movement also navigates a regulatory landscape skeptical of cryptocurrencies, as regulatory bodies urge caution in the face of potential economic instability.