Arca Labs’ partnership with Securitize makes it possible for investors to have access to digitalized financial products starting with Arca U.S. Treasury Fund. the new partnership focuses on tokenizing financial products and using blockchain as the underlying technology for security matters.
New products will be available within the existing regulated framework. This feature makes new tokens more attractive for mainstream investors. The two companies have a considerable history and expertise in private investment and digitalized financial products.
Digitizing Every Aspect of Investment
Digitizing financial products has always been attractive for finding new users in the blockchain industry. It makes it possible to offer traditional investments like treasury funds in an innovative and more secure way.
Arca Labs is one o the most active firms in this section. It’s the innovation division of digital asset management firm Arca. Their new partner is Securitize. A company that makes it possible for investors to invest in the private markets. For example, users can invest in private businesses, real estate, and funds using the services from Securitize.
The result of the recent partnership will be more regulated, tokenized financial products for every investor. The first product will be the Arca U.S. Treasury Fund.
Many users are now seeking tokenized financial products. Most of them are familiar with blockchain-based products and prefer them. But there are not many companies that can provide these products and meet the regulatory requirements, too. The recent partnership between Arca Labs and Securitize is focused on bringing new products within the current regulatory framework.
Rayne Steinberg, CEO of Arca, said about the new partnership:
“At Arca, we see a future where the vast majority of securities transactions are energized by blockchain technology. To make this a reality, products and companies have to deliver at the highest levels of competency, transparency, and trust. Securitize aligns with Arca on these core principles, and our efforts will be vital in driving us toward a future where digital securities are the norm, not the exception.”
According to the announcement, Securitize will be responsible for providing the smart contract and issuance platform for the Arca U.S. Treasury Fund. it will be the first registered ‘40 Act fund to issue its shares through the blockchain. Other tasks like performing investor verification, KYC/AML, and onboarding will be done by this company. Besides, it will issue a token named ArCoin.
Those who invest in the Arca U.S. Treasury fund through the new financial products will benefit from token ownership and secure history recorded on the Ethereum blockchain. Besides, there will be dashboards for them to manage their investment and also a Securitize iD that lets them participate in future offerings without the need to verify their identity again.
