Arca, an innovative, digital asset investment firm that blends traditional finance with cutting edge blockchain technology, announced that the Arca U.S. Treasury Fund (the “Fund”), an SEC-registered closed-end fund, is available for investment. The Fund is the first product registered under the Investment Company Act of 1940 (“’40 Act”) to offer its shares as digital securities, called “ArCoin.” Shareholders can directly transfer ArCoin using blockchain technology, broadening the use cases within the digital ecosystem.
The Arca U.S. Treasury Fund invests 80% of its portfolio assets in interest-bearing, short-duration, U.S. Treasury securities and seeks to combine the regulatory standards applicable to an SEC-registered closed-end fund with the efficiencies of blockchain technology. Each ArCoin is a share in the Arca U.S. Treasury Fund. Accrued interest is paid directly to ArCoin holders each quarter.
ArCoin was created by Arca Labs—Arca’s innovative, digital product development division—as the first product in an upcoming portfolio of complementary ’40 Act financial products being developed for the digital marketplace. Arca Labs creates tomorrow’s digital investment products in SEC-registered structures of today.
“Our announcement today is a ground-breaking and transformative step toward the unification of traditional finance with digital asset investing as this new category of regulated, digital investment products is made available to investors,” said Rayne Steinberg, chief executive officer of Arca. “It is truly exciting to be pioneering new digital investment products through our Arca Labs division that marry best practices used in traditional finance with the many potential benefits of digital and blockchain technology—this is the next stage of development for the digital ecosystem.”
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