As per the latest reports, Arca Labs has made an announcement in regards to forming a new partnership. Arca Labs has revealed that it has recently formed a new partnership with Securitize. Arca is reportedly the parent company of Arca Labs, and it also acts as Arca’s digital asset investment firm. On the other hand, Securitize is a blockchain tech firm.
Arca Labs has revealed that by forming a partnership with Securitize, they will be working towards the launch of financial products in the form of tokens. The products it is going to launch would be regulated and for the benefit of users on their platforms.
Arca Labs officially announced the partnership between the firms on Thursday, September 23, 2021. The firm has revealed that as part of the agreement, Securitize has agreed that it will be providing a beneficial platform to Arca Labs. The particular platform would grant Arca Labs access to the issuance and management of the smart contracts.
In the initial round of their partnership, Securitize will help Arca Labs launch its Arca US Treasury Fund, which is the tokenized fund by Arca. The Arca US Treasury Fund was reportedly launched by Arca back in July of 2020.
According to Arca, it is a huge achievement for them to be able to launch a treasury fund that is registered and regulated. The Investment Company Act of 1940 grants Arca’s treasury fund a regulated status. With the approval, Arca’s treasury fund has the ability to use blockchain technology for the issuance of digital assets that act as shares.
The particular fund by Arca can be considered a mutual fund, as it fulfills the same regulatory requirements as mutual funds. However, it is not offered through traditional systems, and instead, it is offered through ArCoin, which is a digital asset security token. The ArCoin is reportedly a digital asset that is based on the Ethereum blockchain.
Arca has also provided the percentage of US Treasury Securities it is aiming to invest in the fund. As per Arca, the investment percentage for the US Treasury Securities would be as minimum as 80% of the entire volume.
Previously, the fund transfer agent for Arca Labs was TokenSoft. However, with a new partnership with Securitize, it has been confirmed that TokenSoft will be replaced by Securitize in order to facilitate Arca Labs with fund transfers.
In addition to managing fund transfers for Arca Labs, Securitize will also be responsible for ensuring that all regulatory requirements are met by the fund. Securitize will ensure the proper and approved implementation of the anti-money laundering (AML) and know-your-customer (KYC) policies on the particular fund.