News | 07.07.20
Arca Uses Ethereum In First SEC-Registered Fund for Digital Shares
Investment manager Arca has announced the Arca U.S. Treasury Fund, the first-ever product regulated under the Investment Company Act of 1940 to offer digital securities. The fund, which leverages the ethereum blockchain, will offer shares known as ArCoins, which will provide investors with interest payments on a quarterly basis. The fund will produce these regular interest payments by investing at least 80 percent of its assets into a portfolio of short-term Treasury securities. While the fund does not plan to invest in any digital assets, investors will be able to trade units of ArCoin peer-to-peer via the Ethereum blockchain. Further, financial institutions could potentially use these digital assets for a wide range of use cases, including payments, lending, clearing and settlement, trading, and treasury management.
Read the full article on Forbes.