In July of 2020, after over two years of development, the Arca U.S Treasury Fund (the “Fund”) went effective. That event was historic as the Fund became the first fund registered under the Investment Company Act of 1940 (the “’40 Act”) to issue its shares on the blockchain. The Fund’s shares, which are called ArCoin, are digital asset securities. It was important to create the Arca U.S. Treasury Fund as a closed-end fund under the ‘40 Act as its structure mirrors that of traditional financial institutions. Other widely known ‘40 Act products include mutual funds and exchange traded funds (ETFs).
‘40 Act products require various service providers to run the day-to-day operations of the fund, but having the right service partners is of utmost importance to a first-to-market, innovative product. This means assembling a team of experienced partners who share the same vision and values as us. Two weeks ago, we accomplished this when Securitize became the transfer agent (“TA”) to the Fund.
Service Providers to the Arca U.S. Treasury Fund
Although we publicly announced our relationship with Securitize two weeks ago, the work to integrate with Securitize began months ago as both teams prepared for the Fund’s transfer agent transition. The collective teams worked in lockstep in an effort to ensure that the user experience was simple and investor-friendly and that the functionality for the web portal was enhanced. In preparation for the transition, a new smart contract for ArCoin was deployed to leverage Securitize’s DS Protocol. ArCoin’s former smart contract was decommissioned, user profiles were re-established through Securitize, user flows were re-created and connections to our partners in the ecosystem were re-authenticated - all in preparation for ArCoin to be redeployed to the Fund’s shareholders following the transfer agent transition. This incredibly detailed process required the two teams to work closely to ensure that the shareholder master file was transferred successfully and in its entirety and that all Fund shareholders received their reissued ArCoin from Securitize.
With Arca Lab’s partnership with Securitize, shareholders of the Arca U.S. Treasury Fund can expect to benefit from:
● Token ownership and history recorded using the highly established Ethereum blockchain
● Investor verification, onboarding, and transfer agency within one seamless experience
● A bespoke investor dashboard and API interfaces tailored to the Fund’s shareholders
● A Securitize iD, allowing Fund shareholders the opportunity to participate in more Securitize offerings without additional verification
This transition was made possible due to the hard work of Phoebe, Eric & Will from Securitize as well as Blair and Mike from Arca Labs. We thank them and the greater team for their hard work and efforts in making this transition a success.
Transitioning the Arca U.S. Treasury Fund to Securitize was the first phase of growing our relationship with Securitize. We expect our relationship to grow as we, Arca Labs, and Securitize work together to develop and launch tokenized financial products designed to allow individuals and companies to enter a global, blockchain-based financial future.
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Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.