The financial regulator has finally found a crypto-based product it can be proud of
An investment fund called Arca US Treasury Fund, which functions as an institutional asset manager, just announced that it received the approval by the US Securities and Exchange Commission (SEC) for a new blockchain service. On Monday, the company confirmed that it was registered with the SEC and that it is ready to launch its blockchain transferred fund to its investors. This means that its digital securities like ArCoin can officially start being traded on top of the Ethereum blockchain.
“Our announcement today is a ground-breaking and transformative step toward the unification of traditional finance with digital asset investing as this new category of regulated, digital investment products is made available to investors,” said Rayne Steinberg, CEO of Arca. This is a successful investment fund that has at least 80% of its assets in its portfolio allocated in interest-bearing, short-duration, US treasury bonds and notes.
According to Steinberg, this will be the first investment fund to ever have a crypto representation through tokens that were approved by the Investment Company Act of 1940. This effort took Arca at least 20 months to be completed. The development of its digital token ArCoin was made by the Arca Labs, and it was built on the Ethereum blockchain. It also considered the ERC-1404 standard protocol for its creation. Because this protocol puts a restriction on where the holders can send the token to, the company believes this is what helped it gain approval from the SEC.
Jerald David, president of Arca Capital Management, added, “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.”
An investment fund called Arca US Treasury Fund, which functions as an institutional asset manager, […]