U.S-based crypto-related investment management firm Arca has recently appealed to the United States Securities and Exchange Commission (SEC) for approval to issue its stablecoin dubbed Arca UST Coin, according to its press release on April 12.

Arca UST Coins, a digital asset pegged to a fiat currency such as the U.S dollar, is characterized as ERC-20 compatible tokenized securities, will be launched on the Ethereum (ETH) blockchain after a successful registration.

The firm will reportedly filter out and exclusively keep records of SEC-authenticated transactions, and once the data is recorded on blockchain, it is immutable.

As for the investment fund, the initial net asset value (NAV) of the tokenized securities is set at $1. The minimum investment is $1,000, and allegedly 80% of the total fund will be invested in securities such as bills, bonds, and notes licensed by the U.S Treasury, while the rest goes to similar instruments issued by private entities and the like, as per the document.

The firm also informed prospective customers of minor volatility, which is typical for stablecoin, in comparison with other stablecoins in the market, as it aspires to maximize total returns for holders of Arca UST Coins.

In addition, Arca confirmed to not trade its stablecoin on the traditional stock market or any other decentralized platforms. Hence, investors may only perform peer-to-peer secondary transactions.