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How does Savvy address taxes and reporting challenges for clients with crypto investments?

Ritik Malhotra

Co-founder & CEO at Savvy

There are two lenses to look at it. From the wealth management perspective, we are very advanced. And then from a technology perspective, I think there's a lot more that we can be doing. 

Number one, we have the ability to track crypto assets, which are what the industry calls “held away assets” because they're not custodied with the same custodian that the advisor is at. We’re able to peer into that and have the advisor actually able to control and trade those assets on behalf of a client. It sounds simple—you make a connection through Plaid or an equivalent—but it’s important, because not having the ability to peer into this means that you can't make accurate financial planning decisions. If you have crypto as part of your asset mix and the advisor knows that, then you can start to think, “Well, do we treat this as an alternative and therefore consider another blend of investments?”

From a taxation perspective, while it's not technology-enabled just yet, we have close relationships with some of the more tech-enabled crypto tax providers, and we can do the hand holding there since we have access to the accounts. It’s good to help manage that process.

Find this answer in Ritik Malhotra, CEO of Savvy, on the rise of tech-enabled wealth management
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