Categories: Ethereum

US Asset Manager Files for Blockchain-based Bonds Fund

Click here to view original web page at

Arca Funds, an institutional asset manager and fund creator for digital assets, has filed with the US Securities and Exchange Commission (SEC) for the Arca US Treasury Fund.

More interestingly, the fund will issue shares as digital securities in the form of ERC-20 compatible tokens on Ethereum blockchain. Dubbed ‘ARCA UST Coins,’ the tokenized bonds will be minted to function as a stablecoin, and in this case the reference asset will be the fund’s portfolio.

In an effort to satisfy the SEC, which has so far rejected every crypto-related proposal previously submitted, Arca Funds is attempting to address possible areas of criticism that has made regulators shy away from an approval.

Specifically, the new fund employs a fairly straightforward investment strategy as it plans to hold at least 80 percent of its assets in a portfolio of U.S. Treasury securities, which include bills, bonds and notes. The rest is set to be invested in other types of fixed income vehicles, including bonds, debt securities and other similar instruments issued by US and non-US public or private entities.

Suggested articles

How Entrepreneurs Fail at Blockchain StartupsGo to article >>

SEC provides guidance to crypto assets issuers

Arca’s new fund will set its initial net asset value at $1 with a minimum investment of $1,000 and subsequent investments of at least $100. In addition, the company expects its tokens to have an average portfolio duration between zero and eight years.

Arca further explains in the filing that its investments will focus on assets that are guaranteed by the US government or government-sponsored enterprises. The document further reads:

“Investment Strategy: will be invested in cash or cash equivalents including money market instruments, commercial paper, bank certificates of deposit, banker’s acceptances, and repurchase agreements collateralized by Treasury Securities. The Fund’s continuous offering is expected to continue in reliance on Rule 415 under the Securities Act of 1933 until the date the Fund has sold [1,000,000] shares, or such shorter date as the Board may determine.”

While the STOs are seen as the next big thing in the blockchain sector, a lot of questions remain. Earlier this month, two of SEC’s prominent executives provided guidance to help crypto assets issuers and providers determine whether their token is a security or not. The main takeaway was that the SEC has made it clear that the Howey Test applies to crypto as it does to other investments.

More interestingly, […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: eth ether ethereum blockchain exchange

Recent Posts

  • Bitcoin Business

Robinhood App Encroaches on Banking Turf with High-Yield Money Tool

Popular stock market and crypto trading app Robinhood is going after legacy banks with the relaunch of a cash management… Read More

2 hours ago
  • Bitcoin Business

The blockchain/crypto week in quotes

“The world that Satoshi Nakamoto, author of the Bitcoin whitepaper envisioned, and others are building, is an unstoppable force.” US… Read More

2 hours ago
  • Bitcoin Business

Art and watch collectors: Here’s how blockchain can stamp out fakes

According to an OECD report on counterfeiting, the world trade in fake goods is worth upwards of S$624 billion a… Read More

2 hours ago
  • Bitcoin Business

Litecoin and the Miami Dolphins Join Hands Over Charity

Who would have known American football and cryptocurrency would go so well together? In a press release, The Miami Dolphins… Read More

8 hours ago
  • Bitcoin Business

Crypto News: Grayscale’s Record Inflows, Shell’s New Blockchain Investment

Increasing amounts of capital are flowing into the crypto and blockchain start-up markets. By following the money, investors can uncover… Read More

8 hours ago
  • Bitcoin Business

David Koepsell (YICB 07), Co-founder of Encrypgen, LLC and Blockchain in Healthcare Global

David Koepsell is the co-founder and chief executive officer of Encrypgen, a software company creating next-generation blockchain solutions for genomic… Read More

8 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More