Digital Assets: Arca Launches A Treasury Fund that Will Issue Its Shares as Digital ArCoins

July 8, 2020 | Digital Assets, News
https://dailyalts.com/wp-content/uploads/2020/07/1-arcoin-scaled.jpg

The Arca U.S. Treasury Fund is SEC-registered.

The Arca U.S. Treasury Fund is the first-ever financial product regulated under the Investment Company Act of 1940 allowed to offer digital securities. Digital asset investment firm Arca launched the closed-end fund on July 6.  (Hedgeweek)

Though the fund will invest 80% of its portfolio assets in U.S. Treasury securities, shareholders investing in the fund will be issued digital securities called “ArCoin.”

ArCoin

ArCoin, the digital securities, will entitle the holders to the quarterly interest accrued on the fund’s portfolio assets of interest-bearing, short-duration U.S. Treasury securities.

Moreover, investors do not need a broker to purchase the ArCoins, which are tradeable peer-to-peer using the Ethereum blockchain.

Arca Labs, the research unit of Arca created the ArCoin. However, the ArCoin is an ERC-1404 token built on the Ethereum blockchain and, therefore, features inbuilt restrictions on its transferability.

Arca U.S. Treasury Fund – a hybrid digital asset class?

“The fund is significant because it is the first registered fund to issue digital securities through the use of blockchain technology, said Susan Gault-Brown, a partner at Morrison & Foerster, the law firm which advised Arca, to CoinDesk. “As a result, the fund and the digital securities it issues are subject to a comprehensive regulatory framework while introducing an innovative and versatile asset to the digital ecosystem.”

Rayne Steinberg, chief executive officer of Arca, described the fund as a “transformative” step in the unification of traditional finance with digital assets investing.

Further, he added that the fund was a new category of a regulated and digital investment product.

Useful features of the new fund

According to Forbes, which quoted Jerald David, president of Arca Capital Management, the fund also had the following benefits:

  • freezing and replacement of tokens for investors who have lost their public keys
  • transferability of ArCoin to only whitelisted ETH addresses
  • smart contracts on the blockchain that will restrict transferability as above
  • interestingly, no need for a broker
  • moreover, there was the ability to track transactions on the ethereum blockchain on a real-time basis

Related Story:  Grayscale’s Bitcoin Trust is Mopping up Bitcoin                                                

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/08/Real-Estate-3.jpg
Real Estate: Foreign Buying of U.S. Properties Has Glim 2020 Outlook

COVID-19 is sparking a critical decline of overseas buyer interest.  Foreign buyers have historically been a large part of the United States real estate market.  Lately, however, the size and…

https://dailyalts.com/wp-content/uploads/2020/08/Blackstone.jpg
Blackstone Acquires Largest Consumer DNA Database
August 7, 2020     Alternative Investments, Private Equity

Private Equity Meets Both Privacy Concerns and Major Growth in Next-Generation Industry.  The PE space is buzzing over private equity giant Blackstone’s acquisition of DNA testing company Ancestry.  The firm…

https://dailyalts.com/wp-content/uploads/2020/08/Ares.jpg
Private Equity: Ares Raises $5 Billion En Route To $30 Billion 2020 Haul

Ares Leapfrogs Competitors Through Pandemic.  Investment firm giant Ares has raised $5 billion for its private equity fund in the second quarter.  The firm’s goal is to raise up to…

https://dailyalts.com/wp-content/uploads/2020/08/row-houses-384596_640.jpg
Alternative Investments/Real Estate: HOMZ ETF Issuer To Ring NYSE Closing Bell To Mark Fee Cut
August 6, 2020     Alternative Investments, News, Real Estate

The Hoya Capital Housing ETF (NYSE: HOMZ) announced Wednesday a cut in its expense ratio from 0.45% to 0.30%, effective from August 1, 2020. It claimed that it has the…