Arca, an American institutional-grade investment manager, has filed a request to the SEC ( Securities and Exchange Committee) to issue digitized securities on the blockchain. This was revealed in a filing document released on April 12th.
Arca wants to issue Arca UST Coins which will be authenticated and then recorded on ERC20 compatible tokens on Ethereum. The objective according to Arca is to seek maximum total return consistent with preservation of capital.
In its filing Arca equate the value of UST Coin to one dollar as a stablecoin, with 80% of the fund to be invested in US treasury securities such as bills, bonds, and notes, issued by US treasury. The rest is set to be invested in other types of fixed income instruments, including bonds and debt securities issued inside and outside the U.S. The minimum initial investment by a shareholder amounts to $1,000.
Arca emphasized that its Arca UST Coins will not be listed for trading on any traditional stock exchange or through any other national market system, adding that the firm has no agreements with a decentralized exchange. As such, Arca elaborated that investors will only be able to carry out secondary transactions on a peer-to-peer basis.