Arca Labs launches Ethereum-Based SEC-registered fund

BlockworksJul 6, 2020 ⋅ 1 min read

Today Arca began selling shares in the “Arca U.S. Treasury Fund,” an SEC-registered closed-end fund whose digital shares – ArCoins – are issued and tradable on the Ethereum blockchain. The fund will produce regular interest payments by investing the majority of its assets into a portfolio of short-term US Treasury securities, with the remaining in cash & cash equivalents, investment-grade fixed-income securities, and unrated assets that Arca has determined are of comparable quality.

According to regulatory filings, Arca has been pushing for various forms of the fund for nearly 20 months. ArCoin uses the ERC-1404 token standard, a more restrictive derivative of the popular ERC-20 standard, that restricts token transfers to whitelisted addresses.

Why it matters:

  • According to Forbes, the fund is the first-ever product regulated under the Investment Company Act of 1940 to offer digital securities.
  • Although heavily regulated, ArCoins have enabled US Treasury securities to become the latest real world assets to be ported onto a public blockchain.
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