- Digital asset investment firm Arca has announced the launch of the first SEC registered fund, Arca U.S. Treasury, on Ethereum.
- The fund offers its shares as a digital security called ArCoin that can be transferred directly by investors on Ethereum.
In a press release, digital asset investment firm Arca announced the launch of its Arca U.S. Treasury Fund. The product is the first registered under the Securities and Exchange Commission’s (SEC) Company’s Investment Act of 1940 and will operate on the Ethereum (ETH) blockchain.
Ethereum drives first SEC registered crypto fund
According to the press release, the fund offers the shares of Arca as digital securities called ArCoin. The digital securities will be converted into an ERC-1404 token on the Ethereum blockchain. Unlike the ERC-20 standard, ERC-1404 allows transactions to be restricted and limited to authorized addresses. This ensures that transactions are always carried out under the supervision of the supervisory authority. For this reason, Arca received the approval of the SEC.
In addition, Arca’s fund offers its clients daily reports on net asset value, insolvency protection and periodically audited financial statements. The fund will also hold the assets in a statutory trust, which will be supervised by an independent board of directors. Otherwise, investors will have a variety of use cases. For example, investors can transfer the ArCoin token directly using the Ethereum network. Financial institutions can use the ArCoin for loans, treasury management and payments in sectors where traditional banking does not offer its services.
To make an investment in the Arca fund it is necessary to go to their website. Investments are available now and will have a minimum of $1,000 per investment. According to the statement, shareholders have to open an account with the fund’s transfer agent and complete a Know Your Customer/Anti Money Laundering process. After making the investment, accrued interest will be paid directly to ArCoin holders in each quarter of the year.
Rayne Steinberg, Arca’s CEO, stated that the launch of the Arca fund is a “pioneering and transformative” step. Steinberg welcomed the fact that the traditional financial sector is getting closer to the innovation allowed by cryptocurrencies and blockchain technology. Arca’s CEO also added the following:
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.
The President of Arca Management Capital LLC, Jerald David, stated:
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 (…) ArCoin offers enterprises the opportunity to manage their business operations, treasury management and payments with greater efficiency, less cost, faster settlement times and direct tracking of all transactions.