Arca Labs, the innovation division of one of the leading digital assets investment managers, Arca, and Securitize, a key player focused on tokenizing real-world assets (RWA), have “unlocked liquidity for investors and achieved a significant milestone for registered, tokenized funds.”
Arca received SEC exemptive relief for the Arca U.S. Treasury Fund “to list shares of the Fund, called ArCoin, on secondary markets, marking the first time in history a closed-end fund can be traded on a FINRA-registered Alternative Trading System (ATS), transferred peer-to-peer, and purchased and redeemed through the Fund.”
The Fund offers three types of liquidity for shareholders “not commonly seen in traditional closed-end funds, which typically can only be traded on the secondary market or purchased directly from a broker-dealer.”
As participants in the digital asset industry, Securitize and Arca have “been at the forefront of integrating blockchain technology across all levels of the financial system, from infrastructure to investment products.”
Both companies believe that the tokenization of RWAs has “the potential to revolutionize the financial landscape by creating a more efficient, cost-effective, and transparent financial system.”
Carlos Domingo, Co-Founder and CEO, Securitize said:
“We are thrilled to continue our work with Arca Labs after first launching the Arca U.S. Treasury Fund as part of our primary investment opportunities and now enabling liquidity options on the secondary market. Securitize Markets provides investors access to invest in and trade a broad range of alternative assets and this announcement emphasizes our commitment to increasing overall liquidity of the private markets.”
Jerald David, President of Arca Labs said:
“Arca has worked with regulators since the inception of the Arca U.S. Treasury Fund six years ago. While the process has been gradual, we believe that creating compliant products and solutions that fit into today’s regulatory framework is important for both the financial system and for investors. By providing a third liquidity option for a registered security, we are redefining the role that securities can potentially play in traditional finance.”
Arca’s first tokenized RWA, The Arca U.S. Treasury Fund, is “the first registered fund under the Investment Company Act of 1940 to issue its shares as digital asset securities.”
Issuing and transferring ArCoin “on the blockchain enables peer-to-peer transactions, near-instantaneous settlements, and 24/7 trading, among other benefits.”
Backed primarily by a portfolio of U.S. Treasuries, ArCoin “can potentially replace U.S. Treasuries in enterprise workflows and increase transparency.”
Enterprise workflows include collateral management, treasury management, settlement, and other use cases.
As noted in the update, Arca Labs is the innovation division of Arca, “a digital assets investment firm.”
It is focused on using the transformative power of blockchain and digital assets “to create a more efficient and democratized financial system.”
Arca Labs is leading the effort to “build financial infrastructures, networks, and products for the digital age through research and development, partnerships, advisory, and community building.”
Arca Labs, through its subsidiary, Arca Capital Management LLC, is “an asset management firm that invests and innovates in digital assets. Arca pioneered the BTF (Blockchain Transferred Fund) by launching the Arca U.S. Treasury Fund, the first registered ‘40 Act fund to issue shares as digital asset securities.”