AI, blockchain, and cryptocurrency are rapidly evolving and may open access to new types of investments, though they also carry unique risks and limitations that investors should understand.
This convergence is fundamentally changing how assets are valued, traded, and managed, creating new opportunities for retirement investors. These technologies are breaking down barriers and providing access to investments previously reserved for institutional investors and the ultra-wealthy. However, some investments remain subject to eligibility requirements and may not be suitable for all retirement investors.
AI Investing: Smarter Portfolios with Machine Intelligence
Artificial intelligence has moved from buzzword to practical application, transforming how investments are analyzed and managed. With 72% of financial firms investing significantly in AI in 2025, this technology is becoming essential infrastructure in the investment world1.
Specialized financial AI platforms are now making sophisticated investment analysis accessible to individual investors. This adoption is driven by results—organizations are seeing an average 41% return on their AI investments2.
Key Applications for Retirement Investors
- Enhanced Data Analysis: Processing vast amounts of information that traditional approaches might miss3
- Predictive Analytics: Identify complex patterns in historical data to forecast market trends, assess risk, and optimize portfolio construction4
- Due Diligence Acceleration: Rapidly analyzing deal documents and financial statements — particularly valuable for private equity5
- Better Risk Assessment: Identifying potential issues earlier and more comprehensively
What This Means for Your Portfolio
AI-powered tools are increasingly available to help individual investors make more informed decisions. This levels the playing field, giving retirement investors access to analytical capabilities once exclusive to professional money managers. Even if you don't use AI tools directly, you can benefit when financial advisors and platforms leverage these technologies to provide better insights and service for your retirement accounts.
Blockchain & Tokenized Assets: Access Without Gatekeepers
Blockchain technology has evolved beyond cryptocurrency to solve fundamental problems in alternative investments, making traditionally exclusive or illiquid assets more accessible to retirement investors.
What Is Tokenization?
Tokenization divides high-value, illiquid assets into digital tokens on the blockchain. This enables smaller investors to gain exposure to markets like real estate, private credit, and alternative investment funds.
The Tokenization Revolution
Real-world assets are being divided into digital tokens, allowing smaller investment amounts:
- Real Estate: Properties can now be divided into fractional ownership tokens, with investment minimums much lower than traditional real estate (e.g., a $10M building represented by 10,000 tokens worth $1,000 each)
- Private Credit: This sector emerged as the largest tokenized asset class in 2024, with cumulative loans exceeding $1 billion⁵.
- Alternative Investment Funds: Major financial companies like Hamilton Lane6, Apollo7, BlackRock8, Franklin Templeton9, and ParaFi10 now offer tokenized funds.
- Art & Collectibles: Various platforms are making blue-chip art accessible through fractional tokenized shares, while the Diamond Standard Fund applies this model to diamonds.
Real-World Results
BlackRock’s BUIDL fund—its first tokenized U.S. Treasury product—has quickly captured ~$2.47B in AUM since launching in March 2024, making it the largest player in the tokenized treasury market11. Built on Ethereum and now multichain (including Solana, Polygon, and Avalanche), BUIDL offers qualified investors access to U.S. dollar yields via short-term government securities12. Daily dividends have already topped $7M since inception13, and custody is managed by firms like Anchorage, Fireblocks, and BNY Mellon14.
Beyond Tokens: How Blockchain Lowers Investment Costs
The true innovation extends beyond fractional ownership to "smart contracts" that automate processes and reduce costs. This automation can cut transaction costs by up to 30%15 potentially improving returns for retirement investors. Together this creates a diminished need for certain intermediaries, lower costs, and venues to trade and custody tokenized alternatives with transparency and legal protection.
Crypto Is Becoming a Mainstream Retirement Investment
Cryptocurrency has evolved from a speculative investment to a recognized alternative asset class. While still volatile, growing mainstream adoption and regulatory developments are making it more accessible for retirement portfolios.
Performance and Volatility
Bitcoin delivered extraordinary returns in 2024—up 113% for the year, outperforming traditional investments like the S&P 500 (+25%) and gold (+27%). However, early 2025 demonstrated crypto's volatility with an 11.7% decline, lagging significantly behind several alternative strategies16, underscoring this asset class’ opportunity and risk.
Mainstream Adoption Accelerating
The approval of spot Bitcoin ETFs by the SEC in 2024 marked a turning point, with these funds amassing over $100 billion in assets17. Major financial institutions like BlackRock18, Fidelity19, and several pension funds20 now offer Bitcoin investments, signaling that digital assets have entered the mainstream.
Tax Advantages in IRAs
For retirement investors, holding cryptocurrency in a tax-advantaged IRA offers a compelling advantage. Because crypto trading can trigger taxable events with each transaction, holding these assets in an IRA eliminates the burden of tracking and paying taxes on each trade.
With access to 250+ cryptocurrencies through Alto's Coinbase integration, Alto Crypto IRA investors can trade without immediate tax consequences and avoid complex reporting requirements. For example, an investor who grew a crypto portfolio from $5,000 to $38,000 over 8 years would owe approximately $6,600 in taxes in a regular account, but $0 in an IRA.
Risks to Consider with Emerging Technologies
While the Technology Trio presents compelling opportunities for portfolio growth and diversification, it is also important to understand the specific risks that accompany these innovative investments:
AI-Powered Investments
- "Black Box" Risk: The opacity of AI models can obscure decision-making processes
- Data Quality Risk: AI systems are only as good as their training data
- Regulatory Uncertainty: Evolving rules may impact AI-powered investment strategies
Blockchain & Tokenized Assets
- Smart Contract Vulnerabilities: Code flaws can lead to significant losses
- Custody Security: Loss of private keys means permanent loss of assets
- Regulatory Compliance: Evolving frameworks create uncertainty
Cryptocurrency Investments
- Volatility Risk: Substantial price swings can occur rapidly
- Cybersecurity Threats: Exchanges and wallets may be vulnerable
- Regulatory Action: Government interventions can impact valuations
Navigating the Technology Trio With Alto
The convergence of AI, blockchain, and cryptocurrency is creating access to investment opportunities previously unavailable to individual retirement investors. Whether you're interested in exploring cryptocurrency, tokenized real assets, or investments analyzed using AI technology, Alto provides both the platform to access these opportunities and the educational resources to navigate them effectively in a tax-advantaged environment.
