The American company Arca has registered a new fund with the US Securities and Exchange Commission (SEC), whose shares will be issued as ArCoin tokens on the Ethereum blockchain.
Arca, a digital asset investment company, has announced the launch of Arca U.S. Treasury Fund – a fund whose shares will be issued on the Ethereum blockchain as tokens of the ERC-1404 standard. At the same time, the investments themselves will be invested in short-term bonds of the US Treasury.
Essentially, Arca U.S. Treasury Fund is a regular fund for investments in securities, with an added blockchain level for distribution of shares. Investors will receive one ArCoin token for each share they own, and accrued interest will be paid to token holders every quarter.
ArCoin tokens can be used by financial institutions for settlements, trading and payments. According to Arca, they are “digital stocks” and not ordinary tokens or digital assets, as they represent a share in the fund.
Thus, Arca combined the capabilities of tokens and paper stocks, creating “digital stocks”. As the president of Arca Capital Management LLC, Gerald David, said, digital stocks allow you to more accurately keep records for the fund:
“ArCoin enables companies to manage their business operations, treasury operations and payments with greater efficiency, lower costs, faster settlements and direct tracking of all transactions.”
ERC-1404 tokens can be stored on your own wallets. At the same time, Arca considered the option where the ArCoin holder may lose private keys and tokens will be reissued.
Recall that for the first time plans to launch a fund whose shares will be issued on the Ethereum blockchain became known back in April 2020. However, then it was reported that the shares would be issued as ERC-20 tokens.
