Arta TechFin (“Arta”, HKSE: 0279) is developing regulated, interoperable fund tokens on major chains, will collaborate with Chainlink labs to use Chainlink services and will deliver fiat-based investment returns to Arta TechFin clients. All products and services are subject to relevant regulatory approval.
The cross-chain-enabled fund tokens help clients to stick with their native token community while generating fiat-based returns from TradFi markets via Arta platform. Subject to regulatory approval, Arta Global Markets Limited, a wholly owned subsidiary of Arta, and its global licensed partners might act as placing agents and investment managers of the products mentioned in this presentation as well as any other regulated distributed ledger technology (“DLT”)-based financial products.
Chainlink’s Cross-Chain Interoperability Protocol (“CCIP”) enables highly secure transfers of tokens across public and private blockchains and facilitates market liquidity and token transfers in return for tokenized cash/stablecoins (atomic settlement/Delivery vs. Payment). Chainlink Data Feeds provide more reliable and transparent data for Net Asset Value (NAV) reporting. Chainlink Data Feeds can create a source of truth for NAV data, which can then be published on-chain and made instantly available to all market participants, helping ensure they have access to accurate and up-to-date NAV information. In addition, Chainlink Proof of Reserve can verify that on-chain fund tokens are backed and secured by designated assets under traditional and crypto custodians.
Currently, the targeted return of Arta’s fiat-based investment products is 5.0-15.0% p.a. with daily liquidity, based on current market conditions and historical investment track record.
“Arta is developing cross-chain-enabled regulated fund tokens supported by Chainlink Proof of Reserve and Cross-Chain Interoperability Protocol (CCIP) with the aim of bringing a seamless investing experience to global Web3 users. We see overwhelming demand from Web3 users, traditional investors, and regulators for secure, socially responsible, and fully onchain investment products.
By integrating Chainlink CCIP and Proof of Reserve, a regulated fund token can provide the best user experience—a key advantage DeFi has over TradFi. More importantly, our solution can help native token communities become more vibrant with increased participation from established financial institutions.
Fiat investment returns generated by Arta’s products bring additional liquidity and assets to Web3 communities. The Arta’s regulated fund tokens, supported by Chainlink hopes to make programmable payment and investment more efficient, secure, and accessible,” said Eddie Lau, Co-CEO of Arta TechFin.
New User Journey for Web3: Combining the Best of DeFi and TradFi
The regulated, interoperable fund tokens developed by Arta and supported by the two Chainlink Services will combine the best of DeFi experience including atomic settlement, proof of reserve, cross-chain interoperability and automated market making. The investment product will include investment in risk-free US Treasuries and other securities to yield the best risk-adjusted absolute return with daily liquidity. Arta’s platform provides API-based trading and settlement. Investors can review asset allocation and portfolio performance anytime.
The interoperable fund tokens manage money through smart contracts. Investors will only need to pre-set information such as redemption date and expected investment return when placing an order, the smart contract will execute automatically. The investment products are fiat-based, mitigating counterparty risk and settlement risk.
In addition, Arta TechFin is developing VC-based identities and onboarding. VC implements best-practice regulatory standards in know-your-client (KYC), Anti-money-laundering (AML) and suitability process. Cryptographic challenge and proofs as well as Zero-knowledge proof techniques are applied to preserve privacy and enforce governance. Both investors and FIs will benefit from enhanced compliance control and reduced repetitive entries in onboarding.