Flourish, a provider of technology for registered investment advisers (RIA), today launched Flourish Crypto, a turnkey cryptocurrency investing solution. Flourish Crypto is built on the Flourish Platform, which is offered through Flourish Digital Assets and Paxos Trust Company. The company is wholly owned by MassMutual.
While cryptocurrency has grown into a $2 trillion asset class, solutions for independent advisors have only recently started to appear. More than 80 per cent of financial advisors have fielded crypto inquiries from their clients, while wirehouses, private banks, and online retail trading platforms are actively offering competing solutions.
Flourish said Flourish Crypto offers advisors secure and compliant access to cryptocurrency investing through a simple, easy-to-use platform, complete with key reporting and planning integrations, trading and transfer flexibility, a co-branded client experience, and advisor-specific compliance resources.
“We’ve heard from countless advisors that they are fielding questions about crypto on a daily basis—and that they don’t have the right solutions to meet this growing client demand or to compete with offerings from retail trading platforms and wirehouses,” said Ben Cruikshank, head of Flourish. “We listened to our clients and built Flourish Crypto with the flexibility advisors need around integrations, trading, branding, and compliance. Advisors can now keep these assets within their orbit and offer a crypto solution as part of each client’s holistic financial plan.”
Clients can open accounts online in minutes and have the ability to trade bitcoin 24/7 with $100 minimums and unrestricted liquidity. Flourish Crypto integrates with existing systems—such as eMoney Advisor, Orion, and Envestnet | Tamarac—allowing advisors to report or bill on crypto like any other asset. Advisors can feature their branding, take discretion or offer as client-directed accounts, and have visibility into balances, statements, and 1099-Bs.
Cryptocurrency execution and custody services for Flourish Crypto accounts are provided by Paxos Trust Company, which Flourish said custodies more than $12 billion in assets through relationships with leading fintechs and Fortune 500 companies. Its security system combines modern security features such as bank-level encryption and multi-factor authentication with secure custody via Paxos Trust Company.
Through a partnership with Compliance Solutions Strategies, RIAs will have complimentary access to compliance resources and expertise, including sample ADV language and risk disclosures.
“We are excited to support the needs of RIAs and their clients through our partnership with Flourish,” said Walter Hessert, head of Strategy at Paxos. “We’ve built the leading regulated blockchain infrastructure platform with robust security so that our clients have confidence in the safety of their digital assets.”
Flourish was acquired by MassMutual in February 2021 and operates independently from MassMutual’s insurance and wealth management businesses.
“At MassMutual, we believe that cryptocurrencies are increasingly becoming a part of the financial landscape, both as an investment strategy and technological innovation. In line with our diversified approach to the space, we’ve invested in bitcoin for our own general investment account and are also laying the groundwork for other cryptocurrency offerings and products,” said Gareth Ross, MassMutual’s head of Enterprise Technology and Experience. “We are excited to support the Flourish team as they make cryptocurrency investing more accessible to independent advisors and their clients.”