New York, NY, Jan. 20, 2022 (GLOBE NEWSWIRE) — Arca Labs, the innovation division of digital asset management company Arca, in partnership with Coalition Greenwich, a leading global data provider, to financial services industry insights and insights, recently presented the industry’s first study substantiating the financial markets’ overwhelmingly positive perception, familiarity and interest in digital asset securities.
During the month of July 2021, the Greenwich Coalition conducted interviews with a diverse group of international financial services market players representing front office, technology, risk, operations, strategy and management roles to better understand the perception of digital asset securities and the potential for adoption.
Key findings from The Future of Securities: A Digital Asset Securities Study include:
- 70% of respondents are at least somewhat focused on implementing blockchain for capital markets, with 45% citing they are very/extremely focused
- 76% are very or somewhat familiar with digital asset stocks, especially in North America and those working in technology companies
- 71% of respondents are very or somewhat interested in investing in digital asset securities
- 77% agree that most securities will be digitized and settled on a blockchain within the next 5-10 years
- Real estate and stocks are the two main asset classes designated to represent as digital asset securities
- Transparency and real-time settlement identified as top benefits of blockchain for digital asset securities
“We are thrilled to see this broad and growing interest in digital asset securities reaffirm our belief that this industry is maturing and that the potential benefits of these investment products are better understood,” said Arca Labs President, Jerald David. “We have worked over the past few years to advance the ecosystem and create digital asset products that offer real-time settlement, transparency and liquidity. As capital market participants begin to better understand the structure of the digital asset market and the use of stablecoins, we believe that adoption will continue to increase and eventually lead to the tokenization of every security.
The overwhelming majority of respondents identified real-time settlement as the top benefit of blockchain-based processes for digital asset securities (97% front office; 82% technology/operations/risk; 86% management/strategy and 86% other). Real-time settlement remains one of the main features of Arca’s ArCoin.
Arca Labs launched the Arca US Treasury Fund in July 2020, which is the first fund registered under the Investment Company Act of 1940 (’40 Act) to offer digital stocks. ArCoin, the digital asset security issued by the Arca US Treasury Fund. The Arca US Treasury Fund is primarily comprised of short-dated US Treasury securities, and some of the benefits of the Fund include the ability to peer-to-peer trading on the blockchain. Arca Labs hopes to offer other registered products for the digital market in the future.
Arca is committed to educating investors, industry players and other shareholders in the digital asset space. As part of these efforts, a research paper on the benefits of pooled investment vehicles in collaboration with Coalition Greenwich will be presented on January 27 at Finance on The Blockchain, Powered By Arca Labs. Learn more and register here: https://www.ar.ca/2022-finance-on-the-blockchain-virtual-registration-page
To view the full results of The Future of Securities: A Digital Asset Securities Study, please visit www.ar.ca/btf.
About the study
The Future of Securities: A Digital Asset Securities Study: An Investor and Financial Services Perspective on the Adoption of Digital Asset Securities was commissioned by Arca Labs and conducted by Coalition Greenwich Online during July 2021 Of the 108 interviews, 65% of participants hailed from North America, with 27% in Europe and 8% listed as other, defined primarily as Asia-Pacific. Respondents represented three main sectors: buy-side (31%), banks/brokers/stock exchanges/market infrastructures (26%), technology companies (17%), with an “other” category including consultants, firms lawyers, universities, system integrators. , companies and other institutional market players (27%). Fifty-six percent of participants indicated more than 3 years of activity in the industry (17% 0-1 year; 13% 1-2 years; and 14% 2-3 years).
Arca is an asset management company that invests and innovates in digital assets. Our mission is to offer asset management products that meet the operational, compliance, legal and regulatory standards necessary for sophisticated investors to gain exposure to digital assets. Arca’s product set includes actively managed hedge funds, passive vehicles, and blockchain-transferred funds (“BTFs”), developed by our innovation division, Arca Labs. Arca was the first registered fund to issue shares via blockchain, which integrates peer-to-peer blockchain technology and instant settlement features with traditional investment vehicles. Arca’s founders and senior team members have worked in traditional finance and FinTech across many asset classes and strive to bring the best of traditional finance practices to digital assets to deliver the right product to the right investor at the right time. Learn more about Arca: https://ar.ca
About Coalition Greenwich (a division of CRISIL)
Coalition Greenwich, a division of CRISIL, a global S&P company, is one of the world’s leading providers of benchmarking, analysis and strategic insights on the financial services industry. We specialize in providing unique, high-value, actionable insights to help our clients improve their business performance. Our suite of analytics and insights encompasses all key performance indicators and drivers: market share, revenue performance, customer relationship share and quality, operational excellence, return on equity, behavioral drivers and industry evolution.
Arca Labs Disclaimer
An investor should carefully consider the investment objectives, risks, charges and expenses of the Arca US Treasury Fund before investing.
This and other information is available in the Fund’s prospectus, which should be read carefully before investing. To obtain a prospectus, please call 1-800-445-3148.
The Fund’s annual operating expense ratio, as stated in the current prospectus, is 3.22%, but management has agreed to an expense cap of 0.75% through an agreement Expenditure Limitation for the second year after the Fund’s registration statement becomes effective. For details of the fund’s expenses, please see the prospectus.
No assurance can be given that the Fund will achieve its investment objective, and investment results may vary significantly over time and from period to period.
An investment in the Fund involves risks, including loss of principal. An investment in the Fund is only suitable for investors who can bear the risks associated with the limited liquidity of shares and the uncertainty of emerging technologies, and should be considered as a long-term investment. Other risks specifically associated with the Arca US Treasury Fund are detailed in the prospectus and include no operating history risk, conflict of interest risk, gap fund risk, no minimum product amount risk, fund closure risk, liquidity risk, tax risk, credit and non-payment risk, interest rate risk, portfolio management risk, market risk, call risk, valuation risk and issuer risk. The Arca US Treasury Fund will be one of the first registered funds to offer digital securities and there are additional risks associated with this feature of the fund, including regulatory risk, liquidity risk, emerging technology risk, operational and technological risk and the risks specifically associated. with the Ethereum blockchain. There is a risk that management may not be able to successfully use blockchain technology to validate ownership and transfer Arcoins.
For more details regarding all the risks described above, please consult the prospectus. Arca Capital Management, LLC “Arca” is acting as advisor to the Arca US Treasury Fund, distributed by UMB Distribution Services, LLC, Member FINRA/SIPC “UMB”. Arca and UMB are not affiliated.