Arca’s deal with Securitize signals a growing ability for investors to access digital blockchain-based financial products within the existing regulatory framework.
New York, NY, September 23, 2021 (GLOBE NEWSWIRE) – Arca Labs, the innovation arm of digital asset management firm Arca, and Securitize, which enables investors to access private markets, including private companies , real estate and funds today announced a partnership to bring more regulated and token financial products to investors, starting with the Arca US Treasury Fund.
The news is remarkable as investors increasingly seek exposure to new blockchain-based financial products, including digital asset securities, but institutions are struggling to meet investor demand as few companies tokenization have reached the stringent regulatory and operational thresholds required by investors. Arca and Securitize seek to channel the growth of rapidly developing blockchain technologies into the existing financial services regulatory framework, which we believe is key to increasing investor confidence and adoption.
Under the agreement, Securitize will provide the smart contract and issuance platform behind the US Treasury Arca Fund, the first registered Law 40 fund to issue its shares through the blockchain. As the Fund’s transfer agent, Securitize will perform investor verification, KYC / AML and integration, issue Fund shares in the form of ArCoin digital asset security tokens and maintain off-chain records of the ownership and history of tokens. Other jointly offered tokenized financial products are expected to follow.
“At Arca, we see a future where the vast majority of securities transactions are powered by blockchain technology,” said Rayne Steinberg, CEO of Arca. “To make this a reality, products and companies must offer the highest levels of competence, transparency and trust. Securitize aligns with Arca on these core principles and our efforts will be essential in leading us to a future where digital titles are the norm, not the exception.
“This partnership is important because ’40 Act funds are the backbone of regulated financial markets, accounting for about half the value of all funds in the world. The expansion of our services to cover regulated funds in the United States with a strong partner like Arca is a continuation of our leadership in the development of digital financial products offered under current law, ”said Carlos Domingo, CEO of Securitize. “Arca is a great asset manager and brand. This partnership demonstrates that the evolution of finance from a paper-based, centralized and less accessible past to a digital, decentralized and more democratized future can offer investors new and better opportunities within the existing regulatory framework, perhaps with some modernization over time.
“Ensuring a smooth transition for Arca US Treasury Fund investors was our top priority, and we quickly found a strong partner in Securitize,” said Jerald David, president of Arca Labs. “Securitize is a registered transfer agent with over 200 clients and nearly half a billion dollars in regulated securities issued in just three years, demonstrating a strong alignment between our companies in terms of scale, operational excellence and uncompromising service to our investors. “
With Arca’s partnership with Securitize, Arca U.S. Treasury Fund investors can expect to benefit from:
Ownership and history of tokens registered using the highly established Ethereum blockchain
Investor verification, integration and transfer agency within a transparent experience
A tailor-made investor dashboard and API interfaces tailored to Fund investors
A Securitize ID, allowing investors to participate in more Securitize offers without additional verification
“Partnering with a turnkey solution such as Securitize is essential for Arca Labs plans for continued growth. Each investor receiving a Securitize iD will have access to a wide range of investment opportunities from a single platform and most importantly, existing holders of Securitize iD will also be able to invest in our offerings, ”added David . “Arca Labs is delighted to continue to focus as an educator and product manager in delivering regulated financial instruments on the blockchain.”
Current investors in the Arca US Treasury Fund have been instructed on how their shares will be transferred to Securitize. Those interested in finding out more about the Fund or investing in it can do so at https://arcoin.arcalabs.com/.
Arca is an asset management company that invests and innovates in digital assets. Our mission is to offer asset management products that meet the operational, compliance, legal and regulatory standards necessary for sophisticated investors to gain exposure to digital assets. Arca’s product set includes actively managed hedge funds, passive vehicles and the first blockchain-transferred fund (“BTF”), developed by our innovation division, Arca Labs. The Arca US Treasury Fund is the first registered fund to issue its shares via blockchain, which integrates peer-to-peer blockchain technology and instant settlement functionality with traditional investment vehicles. Arca’s founders and senior team members have worked in traditional finance and FinTech across many asset classes and strive to bring the best of traditional financial practices to digital assets to deliver the right fit. product to the right investor at the right time. Learn more about Arca: https://ar.ca
Securitize’s mission is to provide investors with access to invest and negotiate alternative investments, and companies to raise capital and offer liquidity to shareholders. Securitize has pioneered a fully digital end-to-end platform for issuing, managing and trading digital asset securities, with over 200 companies and nearly 400,000 investors already connected, and approximately $ 500 million of current value digital asset securities issued on the Securitize platform. Securitize is comprised of Securitize, Inc. and its subsidiaries Securitize, LLC (a registered transfer agent), Securitize Capital, LLC and Securitize Markets, LLC (a registered broker, member of FINRA and SIPC, and operator of the alternative of the company trading system, securitization of the markets). Learn more at http://www.securitize.io.
An investor should carefully consider the investment objectives, risks, fees and expenses of Arca US Treasury Fund before investing.
This and other information is available in the Fund’s prospectus, which should be carefully reviewed before investing. To obtain a prospectus, please call 1-800-445-3148.
The Fund’s annual operating expense ratio, as reflected in the current prospectus, is 3.22%. For more details on the fund’s expenses, please see the prospectus.
No guarantee can be given that the Fund will achieve its investment objective, and investment results may vary significantly over time and from period to period.
Investing in the Fund involves risks, including loss of capital. An investment in the Fund is only suitable for investors who can bear the risks associated with the limited liquidity of stocks and the uncertainty of emerging technologies, and should be viewed as a long-term investment.
The other risks specifically associated with the Arca US Treasury Fund are detailed in the prospectus and do not include any transaction history, risk of conflict of interest, risk of gap funds, no risk of minimum product amount, risk of closure. fund, liquidity risk, tax risks, credit and non-payment risk, interest rate risk, portfolio management risk, market risk, call risk, valuation risk and risk transmitter.
The Arca US Treasury Fund is one of the first registered funds to offer digital securities and there are additional risks associated with this characteristic of the fund, including regulatory risk, liquidity risk, emerging technology risk, risk operational and technological and the risks specifically associated with the Ethereum blockchain. There is a risk that management will not be able to successfully use blockchain technology to validate ownership and transfer ArCoin.
For more details regarding all the risks described above, please consult the prospectus.
Arca Capital Management, LLC “Arca” serves as an advisor to the Arca US Treasury Fund, distributed by UMB Distribution Services, a member of FINRA / SIPC. Arca and UMB are not affiliated.
CONTACT: Fran Del Valle Rally Point Public Relations 917.922.5653 [email protected] Evan Wagner Securitize 310.961.1930 [email protected]