Former council employees are set to receive their pension payments through a US-based cryptocurrency firm, following the acquisition of one of the UK’s largest retirement services providers.
Bullish, a crypto trading company backed by billionaire investor Peter Thiel, has agreed to acquire shareholder services group Equiniti in a deal worth $4.2bn (£3.1bn). The move brings together a major traditional financial services administrator with a firm better known for its role in digital asset trading.
Equiniti plays a significant role in global financial administration. It manages share registries for around 3,000 listed companies, including major names such as Berkshire Hathaway and Rolls-Royce, and supports more than 20 million shareholders worldwide. Each year, it processes in the region of $500bn in payments, covering dividends, transfers, and other investor-related transactions.
Alongside its share registry business, Equiniti also runs a pensions administration division. This arm handles the day-to-day operations of retirement schemes, including maintaining online member portals, issuing regular pension payments, and responding to enquiries from scheme members and retirees.
As a result of the takeover, pension administration for certain public sector schemes will fall under the ownership of the crypto-linked firm. That includes arrangements affecting former council workers, who will begin receiving their pension payments via the newly acquired business. Equiniti is currently contracted to provide pension services to the Local Government Pension Scheme (LGPS) through to 2029, meaning existing service arrangements are expected to continue for the foreseeable future.
The deal is likely to attract scrutiny given the involvement of a cryptocurrency-focused company in the administration of long-term pension payments, an area traditionally dominated by established financial institutions.