- Highly secure transfers of tokens across public and private blockchains, instant & accurate NAV update
- Proof of Reserve can verify that on-chain fund tokens are backed and secured by designated assets under custodians
- Fiat-based, regulated Investment Product
(Hong Kong, 2 November 2023) 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.
About Arta TechFin Corporation Limited
Arta TechFin (HKSE: 0279) is a hybrid financial (HyFi) platform bridging traditional finance with blockchain-based financial system via technology innovations. Its regulated one-stop solution enables corporates, financial institutions, and family offices to access traditional assets and digital assets.
Arta TechFin, through its various subsidiaries, are licensed under Hong Kong Securities and Futures Commission. Other licenses include Hong Kong Stock Exchange participant, insurance brokerage license, trustee license and money lending license in Hong Kong as well as Eurex and Chicago Mercantile Exchange participants.
For further enquiries, please contact [email protected].
About Chainlink Labs
Chainlink Labs is the primary contributing developer of Chainlink, the decentralized computing platform powering the verifiable web. Chainlink Labs is dedicated to the development and integration of Chainlink as the industry-standard platform for providing access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink Labs helps power verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors by collaborating with some of the world’s largest financial institutions, notably Swift, DTCC, and ANZ. Chainlink Labs also works with top Web3 teams, including Aave, Compound, GMX, Maker, and Synthetix. Chainlink Labs was recently ranked in Newsweek’s 100 Most Loved Workplaces 2023 in both the United States and United Kingdom.
*All products and services are subject to relevant regulatory approval
New User Journey for Web3: Combining the Best of DeFi and TradFi
DeFi: atomic settlement, proof of reserve, cross-chain interoperability, automated market making, token economy growth.
TradFi: best risk-adjusted absolute return, credit-risk-free government yield income, API-based trading and settlement, daily liquidity.
1. Subscription Made Seamless at Low Cost
Subscribe to Fund Tokens in Style
- Native cryptocurrencies,
- CBDCs, or
- Fiat currencies
*One-stop, automated markets for crypto/fiat conversion; no more layer fees, immediate mint-and-burn
2. Access the Fund Token on Your Native Chain
Generate Daily Fiat Investment Income
- Views fund NAV & info onchain
- Holds fund token on your native chain
- Grows your native chain market cap
*Regulated TradFi investment managers, brokers and intermediaries (~US$ 100+ Trillion in size) contribute to your community growth
3. Programmable Payment and Investment
Manage Money With Smart Contracts
- Execute your needs automatically
- Redeems with daily liquidity
- Reduces counterparty risks
- Verifies integrity with Proof of Reserve
*The expected return of Arta TechFin’s regulated TradFi products with daily liquidity is 5.0-15.0% p.a. based on current market conditions and historical performance track record.
|Fund and Payment Token Cross-Chain Interoperability||Better liquidity: Investors on different chains can trade directly|
|Fund Token Proof of Reserve||Lower fraud risk: Investors and regulators can be comfortable with token validity|
|Fund Token Static Data Referenced to TradFi Systems||One-stop journey: Investors can view full fund details onchain without TradFi systems|
|Fund Token Atomic Settlement and Hourly NAV||Better transparency: Investors can execute and settle fund orders instantly and obtain NAV information hourly instead of daily|
|Programmable Payment Token||Better efficiency: Investors can put in all they need at order initiation|
|Payment Token On/Off Ramp Fully Regulated||Highest KYC/CTF standards: Investors and agents in full compliance|
|Fund Token Fully Regulated||Highest KYC/CTF standards: Investors and agents in full compliance|
|Fund Token API-Based TradFi Investment Solutions||Best risk/reward investment: Investors can generate 5.0-15.0% target return with daily liquidity|