Arca Labs – the innovation-focused division of digital asset investment entity Arca – has reportedly formed an alliance with blockchain tech company Securitize to introduce regulated, tokenized financial offerings.

Specifically, Securitize has reportedly entered an agreement with Arca Labs to build a smart contract and issuance platform for the latter, beginning with Arca’s tokenized fund – goes by the name the “Arca U.S. Treasury Fund” – established in July last year. 

Arca reportedly regards the Arca U.S. Treasury Fund as the first treasury fund, having the registration finalized under the Investment Company Act of 1940, to generate shares as virtual assets using the blockchain.

The fund reportedly achieved compliance with similar requirements in regulation compared to a mutual fund, but distinguishes via providing exposure through Ethereum-powered virtual asset security tokens dubbed “ArCoin.”

Arca reportedly revealed that the fund will typically “invest a minimum of 80% of assets in U.S. Treasury securities.”

Securitize has reportedly taken the responsibility for the fund’s transfer agent, replacing TokenSoft, and will be in charge of managing regulatory compliance mandates, nominally investor verification, know your customer and anti-money laundering policies, as well as with onboarding customers and issuing the fund’s shares using ArCoin.

Securitize reportedly functions as a registered transfer agent, catering to more than 200 customers and approximately 500 million dollars in regulated securities issued during the past three years.

The transition has reportedly triggered the burning of the fund’s current outstanding balances and reissued in an automated fashion under Securitize’s new smart contract to each shareholder.