Arca, an innovative digital asset investment firm known for blending traditional finance with cutting edge blockchain technology, announced on 6 July, 2020, about Arca U.S. Treasury Fund’s availability for investment. The Fund is the first product that has been registered under the Investment Company Act of 1940 for offering its shares as digital securities known as “ArCoin”. Using blockchain technology, shareholders can directly transfer ArCoin to widen its usage in the digital ecosystem.
The Arca U.S. Treasury Fund invests almost 80% of its portfolio assets in short-duration, interest-bearing, U.S. Treasury securities and combines the regulatory standards that are applicable to an SEC-registered closed-end fund with capabilities of blockchain technology. In the Arca U.S. Treasury Fund, each ArCoin is a share, and payment of accrued interest is done to ArCoin holders each quarter.
ArCoin was made by Arca Labs, a digital product development division, as its first product in an upcoming portfolio under the 1940 Act where financial products were being developed for the digital marketplace.
Rayne Steinberg, chief executive officer of Arca believes this announcement to be a ground breaking step towards the collaboration of traditional finance with digital asset investment which will be made available to its investors. He exclaimed, “It is truly exciting to be pioneering new digital investment products through our Arca Labs division that marry best practices used in traditional finance with the many potential benefits of digital and blockchain technology—this is the next stage of development for the digital ecosystem.”
ArCoin is an ERC-1404 token, built on Ethereum blockchain, that offers customers with digital access to sophisticated protection and transparency. Under the 1940 Act, the fund is registered to provide daily net-asset-value, periodic audited financial statements, bankruptcy protections and assets held in a statutory trust monitored by a board of independent trustees.
According to Jerald David, president of Arca Capital Management LLC, there has been a dramatic shift from physical to digital in the last few years, especially the last 4 months amid the COVID-19 pandemic. He said “The digital assets ecosystem is a rapidly growing and evolving industry. We are establishing Arca Labs at the forefront of this industry to innovate digital investment products that provide regulatory oversight and transparency, along with daily valuation, that investors look for in their traditional core investment holdings.” David further mentioned that ArCoin offers enterprises the opportunity to manage their business operations, treasury management, and payments with less cost, greater efficiency, faster settlement times, and direct tracking of all transactions.
ArCoin offers its investors and digital enterprises multiple use cases and widespread integration. ArCoin serves as an alternative to volatility in digital assets and helps financial institutions and digital asset enterprises in lending, payments, treasury management, and clearing and settlement, in banking-related industries.
Arca U.S. Treasury Fund investments can be done through ArCoin.ArcaLabs website now with a minimum purchase of $1,000. Shareholders need to create an account with the Fund’s transfer agent and complete their KYC documentation before making any investment.
Arca, an innovative digital asset investment company that collaborates traditional finance with cutting-edge blockchain technology. It helps investors to thoughtfully invest in digital assets by using blockchain technology. Arca is made up of two main business divisions- Arca Funds and Arca Labs, managed by Arca Capital Management, LLC. Arca U.S. Treasury Fund is Arca Labs’ one of the initial products under the Investment Company Act of 1940.
For more information, visit: https://www.ar.ca