Arca Labs, part of digital asset firm Arca, has partnered with Oasis Pro Inc. (OPI) on a joint venture to create tokenized assets under the Investment Company Act of 1940. The partnership seeks to bring more regulated, tokenized financial products to investors.
The “4o Act” is the legislation that outlines the requirements of investment companies and publicly traded investment products offerings, like mutual funds.
Oasis Pro is a subsidiary of Oasis Pro Markets, LLC a firm that operates an ATS or Alternative Trading System – a secondary market that can trade digital securities. The JV seeks to create Blockchain Transferred Funds (BTFs).
Arca was the first company to create a BTF with its Arca U.S. Treasury Fund (the “Fund”), which are in effect digital securities. The ArCoin is the digital security representing shares of the Fund. This joint venture expects to initiate the OPI/Arca Digital Asset Working Group for Securities, comprised of market participants.
Jerald David, president of Arca Labs, said that as they lead the charge to build the digital securities market it is crucial to be collaborative from the beginning:
“That’s why partnering with Oasis Pro Markets and jointly establishing a working group to understand the needs of the customers using these types of products is essential to better serve the market.”
The OPI/Arca Digital Asset Working Group for Securities (DAWGS) will determine the terms and conditions necessary to create products that will meet the needs of the industry through the adoption of digital securities.
Pat LaVecchia, OPI CEO , called the partnership exciting as they look to create innovative products:
“As the first U.S.-regulated ATS to allow subscribers to settle trades of digital securities via payment through digital cash, we prioritized working with regulators to develop a solution that meets the needs of both regulators and our customers. We know that regulation is inevitable in digital assets and working with partners that share this same mindset is crucial to the development, validity, and success of the digital asset securities market and the ecosystem.”