“We believe that the shift to real-time treasury — where payments, liquidity management, and security management are effectively instantaneous — will gather pace with the emergence of an always-on economy.” - Citibank, Top Priorities for 2020 Report
ArCoin: “The First of its Kind”
As the first registered Fund to issue digital securities on the blockchain, the Arca US Treasury Fund and its digital share, ArCoin, are uniquely situated to help bridge the gap between traditional finance and blockchain.
So What Are These Efficiencies Again?
For any industry, blockchain enables the following features:
1. Increased Speed - Blockchain executes on-chain transactions within minutes.
2. Reduced Costs - By allowing for parties to directly transact, middlemen are removed, thus cutting costs.**
3. Enhanced Transparency - Even on a private blockchain, every transaction is recorded. This enables transparency in auditing and accounting, thus reducing costs and raising efficiency.
4. Strengthened Security - Blockchain, unlike current technologies and their platforms, operates on a thick stack protocol. This thick stack means blockchain’s security is not an “added layer” but inherent.
** “Gas” is an additive fee that ArCoin shareholders will incur when they transfer their shares in a peer-to-peer transaction. Readers should keep this in mind when considering the “lower costs” of transacting on the blockchain.
How Can Treasurers Potentially Benefit from Blockchain?
Corporate treasury, like any other corporate function, is continuously evolving. The diagram below highlights the five common concerns of treasurers as they move into a more digitally connected world. We believe that many of these pain points can be addressed through the wide-scale adoption of blockchain solutions.
Blockchain Can Revolutionize Treasury Management… so, what about ArCoin?
As treasurers assess integrating blockchain into their workflows, ArCoin's underlying investments in US Treasuries may offer a less volatile path than more volatile digital assets like Bitcoin. A new digital age is upon us, and the modern treasurer is orienting itself towards the future by learning more about digital solutions that can help modernize its functions. Implementing and advocating for digital solutions today can prepare your treasury for the change in tools and processes enabled by blockchain solutions.
This is the first post in a series, The Modern Treasurer. Look for The Modern Treasurer: Part 2, where our team builds upon blockchain’s efficiencies for treasury management and pulls back the curtain on the recent BTC hype.
Our team is awaiting your input and questions at email@example.com
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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.