Arca, a US crypto investment company, announced on the 23rd that its innovation division Arca Labs will issue regulated, tokenized financial products for the ‘Arca U.S. Treasury Fund’.
The company has partnered with Securitize, a provider of digital securities issuance platforms, for the initiative.
The ArCoin digital asset security tokens will be issued on the Ethereum blockchain with the token ownership and remittance records being managed off-chain.
The fund has registered with the SEC following the US Investment Company Act of 1940 to issue shares as digital assets via the blockchain. Arca filed an application in 2018 and received regulatory approval in mid-2020.
The press release noted that many investors want to seek exposure to blockchain-based financial products, but few meet strict regulatory requirements. Arca is looking to offer fast-developing blockchain technologies that work in compliance with the existing financial services regulatory framework.
Securitize CEO Carlos Domingo noted:
“This partnership is important because ‘40 Act funds are the backbone of the regulated financial markets, representing roughly half the value of all funds worldwide. Expanding our services to cover U.S. regulated funds with a strong partner like Arca is a continuation of our leadership in developing digital financial products offered under existing law.”
Arca is expanding its offering in terms of crypto-related funds that institutional investors can invest in to seek exposure. In August, Arca launched the industry’s first active income (dividend income) yield fund “Arca Digital Yield Fund”.