TokenSoft launches support for ‘40 Act Funds
Updated: Mar 4, 2020
Registered Investment Companies can now sell tokens to investors
San Francisco, CA, November 6, 2019: TokenSoft, the leading platform for financial institutions issuing securities on a blockchain, recently launched support for registered Investment Companies under the 1940 Act including ‘40 Act Funds.
"TokenSoft's ability to support our needs in building a '40 Act compliant token offering was the main reason we chose them to partner with our registered fund offering, said Jerald David, president of Arca Capital Management, a Los Angeles-based digital asset manager. "They understand the unique needs the ArCoin US Treasury Token has as an open-ended fund with on-going issuances and redemptions, and have been very helpful in our registration process.”
TokenSoft’s support for registered ‘40 Act Funds include:
- Ongoing offering and token issuance support for open-ended funds
- Quarterly or semi-annual redemption periods for token holders
- Dividend support for cash-flow generating funds
Arca’s US Treasury Fund (Ticker: $UST) is a ‘40 Act Fund pending SEC approval of their fund registration. The $UST token will represent an interest in the fund composed primarily of U.S. Treasuries as a low volatility investment alternative to stablecoins.
Investors passing Know Your Customer and Anti-Money Laundering (KYC/AML) checks will be added to the smart contract’s whitelist for approved holders of $UST built on the ERC-1404 standard. This is unique for registered offerings that do not need to limit sales to accredited investors only.
“Adding support for registered ‘40 Act Funds like Arca brings together a lot of tools we have built into one offering from on-going issuances and dividend support to integrations with transfer agents,” said Mason Borda CEO of TokenSoft.
Learn more about how TokenSoft can help you tokenized and launch your ‘40 Act Fund at tokensoft.io.
TokenSoft is the leading platform for issuing security tokens and other compliant assets on the blockchain for financial institutions. From Swiss banks to IPOs, our suite of technology supports the full lifecycle of securities including onboarding, distribution, custody, and ongoing token administration.
Information provided in this release is for informational purposes only. This is not financial, legal, or tax advice. Investors should consult with their own advisors prior to making any investment decisions.
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