Two Firsts for Finance: Anchorage and Tokensoft Support SEC-Registered Securities on the Blockchain
Diogo Mónica, Co-Founder and President
Anchorage has partnered with security token platform Tokensoft to bring institutional investors secure and compliant participation in SEC-registered security offerings on the blockchain. With this integration, institutional investors can purchase SEC-registered security tokens issued through Tokensoft and custody their tokens securely with Anchorage, all in one seamless user experience. The first two tokens supported through this partnership — ArCoin and INX Token — are nothing short of historic, each breaking a patch of new ground for the digital asset space, and for finance as a whole.
“In traditional brokerage accounts, when a share is purchased by an investor, that share is placed into custody, removing the need for the investor to determine custodial options. This user experience has eluded the blockchain space until today. Through Tokensoft’s partnership with Anchorage, we’re enabling investors and issuers to invest in blockchain-based securities with the same user experience present in financial services today.” -Mason Borda, CEO, Tokensoft
After almost two years of regulatory review and product development, Arca Labs launched the Arca U.S. Treasury Fund (the “Fund”) registered under the Investment Company Act of 1940 in early July of this year. A managed portfolio consisting primarily of short duration U.S. Treasuries, the Fund issues its shares as ArCoin, an ERC-1404 token that is transferable atop the Ethereum blockchain, making it the first ever SEC-registered fund to issue digital securities through use of blockchain. We’re proud to partner with Tokensoft and Arca Labs to bring this financial first to investors.
“Our industry needs companies that will evolve and innovate to create investment products for a new era of finance, while also embracing the existing regulatory structures that are essential for gaining the confidence of financial institutions currently waiting on the sidelines,” says Jerald David, President of Arca Capital Management. “We believe the Arca U.S. Treasury Fund is such an example. All aspects of the value chain — from issuance to asset management to custody — are critical in providing that level of familiarity to these institutions. Leveraging TokenSoft’s technology and the qualified custody of the Anchorage platform, we believe that ArCoin can act as a gateway for these institutions owning digital assets.”
In the coming weeks, Anchorage and Tokensoft will also support INX Limited in the first ever SEC-registered IPO for a security token. Through a regulatory lens, INX Token is an equity security registered with the SEC and offered to the general public. As the INX Exchange ecosystem grows and evolves, holders of INX tokens will be able to tap into additional utility, such as the ability to pay transaction fees on exchange. Together with Tokensoft, we’re honored to support such an important launch.
More than being significant in their own right as firsts for the industry, the existence of fully regulated securities on the blockchain opens up huge new opportunities beyond those currently available in traditional markets. Each of these projects strives to make a transparent and regulated way forward for security tokenization — important steps for financial instruments on the blockchain.
If you plan to hold ArCoin or INX security tokens, please get in touch.
Disclaimer: Custody services are offered through Anchorage Trust Company, a South Dakota chartered trust company. Trading and collateral management services are offered through Anchorage Hold, LLC, a Delaware limited liability company. Anchorage Trust Company and Anchorage Hold are not registered with the SEC or any state securities authority. Services are not yet offered to residents of New York. Anchorage Trust Company does not engage in the offer, sale or trading of digital assets. Anchorage Hold does not engage in the offer, sale or trading of securities. Anchorage Trust Company and Anchorage Hold do not provide legal, tax, or investment advice. Services are provided only to clients that meet specified standards of sophistication and have entered into the applicable custody or trading agreements. Anchorage Trust Company and Anchorage Hold are wholly-owned subsidiaries of Anchor Labs, Inc., a Delaware corporation headquartered in San Francisco, California.
Holdings of cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent. Nothing in this communication is intended to imply that any asset held in custody by Anchorage is low-risk or risk-free. Anchorage does not provide investment, legal, or tax advice. Digital assets held in custody are not guaranteed by Anchorage Trust Company or Anchorage Hold and are not FDIC-insured.