Thought Leadership | 2020
The Modern Treasurer Part 2: Bitcoin is a Treasury Investment Solution, ArCoin is a Treasury Management Solution
Digital GoldFor those following finance, you are already acutely aware of the recent rise of interest in Bitcoin. Bitcoin, once shunned as an asset used by criminals, is now in many institutional investors’ portfolios as a diversified hedge against inflation. Additionally, the narrative of BTC as “digital gold” is on the rise. Led by the highly publicized investment in Bitcoin by MicroStrategy, Bitcoin's role in traditional treasury management has skyrocketed with no ceiling to adoption in sight.
Read MoreThe Modern Treasurer Part 1: Treasury Management’s Biggest Pain Points Meet Blockchain
As the first registered Fund to issue digital securities on the blockchain, The Arca US Treasury Fund and its digital share, ArCoin, is uniquely situated to bridge the gap between traditional finance and blockchain. The Arca US Treasury Fund invests in a portfolio of short duration treasuries and equivalents making ArCoin well suited as a proxy for US Treasury bills, bonds and notes in a corporate treasurer’s portfolio. By replacing US Treasuries with ArCoin, treasury managers can invest in US Treasuries while receiving the efficiencies of blockchain.
Read MoreWhy Insurance Needs a Blockchain Revolution
For most of us, insurance is a necessary evil. The events which trigger insurance payouts are usually unpleasant and disruptive, but having insurance in place prevents them from being catastrophic. Having insurance is now seen as a necessary condition for doing business and a huge global insurance industry has evolved to cater to these needs. The next evolution in insurance may very well be the adoption of blockchain technology.
Read MoreRevolutionizing the Digital Assets Ecosystem: How Arca Pioneered the Use of U.S. Treasuries for ArCoin
The selection of US Treasuries as the underlying asset of the first Blockchain Traded Fund incredibly deliberate. Arca first began thinking about creating the Arca US Treasury Fund and it’s digital security, ArCoin, back in 2018 and set out to accomplish three important goals.
Read MoreOverview of the ArCoin Purchasing Process
Arca Labs strives to provide the highest customer success for investors purchasing, transferring, and storing their ArCoin. Below you will find resources to guide you through purchasing ArCoin using the ArCoin Portal. Before obtaining ArCoin, investors should read the ArCoin FAQs to better understand the processes and requirements associated with holding ArCoin.
Read MoreFrom ETFs to BTFs
For years, participants in the digital assets industry have discussed how to bring institutional money into this ecosystem. While this mission was not always the highest priority for the first-movers in crypto, increased institutional adoption has made the industry focus on meeting their requirements. The reasoning behind this shift is obvious - that’s where the money is. Institutional investors own roughly 80% of the equity market, meaning they can bring trillions of dollars of capital into this ecosystem.
Read MoreIntroducing ArCoin Keepers: A Potential MCD Liquidity Enhancement
In my last blog post I discussed ArCoin’s use case as a bridge between real world financial assets and DAI, Maker’s decentralized stablecoin. As a recap, ArCoin is a digital share of the Arca U.S Treasury Fund issued through the blockchain. Although it served as a provoking theoretical piece, it is time to further discuss ArCoin’s implementation plan to fit into Maker’s Collateralized Debt Positions (CDP).
Read MoreThe Melding of CeFi and DeFi: ArCoin’s Path to Becoming MKR Collateral
The Fund, and it’s digital security, ArCoin, is the first closed end interval fund registered under the 40 Act offering digital shares. Upon the creation of the Fund and ArCoin, we knew that applying to be a collateral option for MakerDAO was one of the first use cases we wanted to pursue.
Read MoreThe Journey to Launching the Arca U.S. Treasury Fund and ArCoin
Today may be a day that changes financial services forever. Arca team members have been lucky enough to launch two regulated futures exchanges, many derivatives contracts and an ETF company, just to name a few. While each of these initiatives forever impacted the landscape of finance, our current launch of the Arca U.S. Treasury Fund (“Fund”) and ArCoin may be more transformative.
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