Trading Begins for First SEC Approved Treasury-Based Digital Security ArCoin
With an announcement on 6 June 2020, Arca has started trading for its new digitized security, the ArCoin.
ArCoin operates on the Ethereum blockchain and represents 80% of the assets of the Arca’s US Treasury fund. The US Treasury fund has been registered under the Securities and Exchange Commission (SEC).
ArCoins are ERC-1440 standard tokens which will provide investors with the highest level of interoperability within the Ethereum Ecosystem.
Arca Treasury Fund
The Los Angeles based fund management company Arca funds had been trying to take the historical stride by tokenizing the US Treasury bonds since April this year.
Now with the successful launch of the ArCoin, Arca has become the first company to tokenize the funds under the ‘Investment Company Act of 1940’ for offering digital securities to the US traders and investors. ArCoin will provide interest to the investors on every quarter.
The Trading launch
As the trading has started, a hundred million units of ArCoin are now available for trading. The fund has not been focused on investment in any digital assets. The investors will be facilitated to trade the coins on the Ethereum blockchain via peer-to-peer secured network.
Before the launch of the fund, President of Arca Capital Management, Jerald David said, “We believe the launch of the US Treasury fund is an important milestone for the digital currency/blockchain space for several reasons.”
He further added, “On a high level, it is the first time that the blockchain will be integrated into an SEC-registered fund’s framework.”
While revealing benefits of the fund he stated that the shareholders can directly transfer ArCoin via the blockchain technology and can also be used for fund operations such as freezing and replacing tokens in case of loss of public keys. Also, smart contracts can be used to transfer the ArCoin to the whitelisted ETH addresses.
The Fund offers other benefits such as replacement of ArCoin if the public key is lost, tracking down transactions on the Ethereum blockchain on a real-time basis. It doesn’t need any intermediary as well, as the investors can purchase the ArCoins directly.
SEC RejectionSeveral other proposals of the Arca funds have consistently been disapproved by the SEC. When Arca was part of the Bitcoin ETF filing last summer with Wilshire Phoenix, the proposal has been disapproved by SEC.
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CBW - External Analyst