Arca Labs, the innovative branch of digital asset investment firm Arca, has partnered with blockchain tech firm Securities to launch controlled, tokenized financial products.
As part of the Sept. 2 announcement, the securities firm has signed a smart contract and issue platform to provide the first Arca tokenized fund, the Arca US Treasury Fund, which was launched in July 2020.
Arka identified it as the first treasury fund registered under the Investment Companies Act of 1940 to issue shares as a digital asset through blockchain. The fund meets the same regulatory requirements as a mutual fund, but differs from “ArCoin” in that it offers exposure through atherium-based digital asset protection tokens.
Arka said the fund would typically “invest at least 80% of its assets in U.S. Treasury securities.”
Securitization has taken on the role of transfer agent of funds from Tokensoft, and will be responsible for handling regulatory consent orders such as verifying investors, controlling your customer and anti-money laundering policies, onboarding clients and issuing shares of funds through ArCoin. Securitize is a registered transfer agent with more than 200 clients and about half a billion dollars in regulated securities issued over the past three years.
This conversion saw the existing outstanding balances of the fund burned out and automatically reissued to each shareholder under the new Smart Agreement.
In addition, there will be jointly proposed tokenized financial products that will be announced at a later date.
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“Companies are struggling to meet the needs of investors because a few tokenization companies have met the stringent regulatory and operational limits required by investors,” the statement said. And important for adoption. ”