As for the guardrails, the Stash app will show pop-ups to customers each time they attempt to make a crypto transaction, showing them what percent of their overall portfolio is at play. It will also make recommendations to customers about what percentage of crypto they should hold in their portfolios based on a risk tolerance survey they answer when joining the platform. Investors on Stash also will have to go through a mandatory training on the platform before interacting with crypto.
Feldman said that even for the most risk-tolerant investor on Stash, the maximum exposure to crypto the platform recommends is 6% of an investor’s overall portfolio.
“We understand it’s a volatile asset class. I cannot tell you if the crypto market is going to go down 20% in the next month … but we do have a firm belief that longer-term, [crypto] will be a large part of the ecosystem,” Feldman said. Having a small amount of crypto exposure, he added, will help Stash customers capture some of the asset class’s potential upside in the long term.
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