In a significant step toward achieving a harmonized traditional and decentralized finance landscape, Arta TechFin Corporation Limited has announced its initiative to develop regulated, interoperable fund tokens on major blockchains. The move sees them collaborating with Chainlink Labs, the primary developer of the decentralized computing platform Chainlink.
Arta TechFin and Chainlink are Fusing the best of both worlds: DeFi and TradFi
Arta TechFin is set to combine the benefits of Decentralized Finance (DeFi) and Traditional Finance (TradFi) by offering fund tokens that facilitate secure transfers across both public and private blockchains. One of the highlights of this partnership is the utilization of Chainlink’s Cross-Chain Interoperability Protocol (CCIP). CCIP ensures that token transfers are not only highly secure but also provide market liquidity in exchange for tokenized cash or stablecoins, commonly referred to as atomic settlement or Delivery vs. Payment.
Moreover, with Chainlink Data Feeds in the mix, the Net Asset Value (NAV) reporting process becomes more transparent and reliable. Investors and market participants must have access to the latest NAV data, ensuring informed decision-making. The on-chain publishing of this data guarantees instant accessibility. Another major benefit is the Chainlink Proof of Reserve, which verifies that the on-chain fund tokens have appropriate backing, safeguarded by specified assets under traditional and cryptocurrency custodians.
Eddie Lau, Co-CEO of Arta TechFin, highlighted the potential of this partnership. He remarked, “By integrating Chainlink CCIP and Proof of Reserve, we aim to offer a regulated fund token that provides the best user experience, blending DeFi’s advantages over TradFi. The solution can invigorate native token communities and enhance participation from renowned financial establishments.”
A new dawn for Web3 investors
Arta’s fund tokens will usher in a novel experience for Web3 users. These tokens will encapsulate the core benefits of DeFi, such as atomic settlement, proof of reserve, cross-chain interoperability, and automated market making. With an investment strategy that involves risk-free US Treasuries and other securities, the objective is to achieve optimal risk-adjusted returns combined with daily liquidity.
The unique feature of these tokens is the utilization of smart contracts to manage investments. Investors need to input details like the redemption date and the anticipated investment return. Once these are set, the smart contract takes over, executing the order automatically. These investment products are fiat-based, which significantly minimizes counterparty and settlement risks.
Arta TechFin is also spearheading the development of VC-based identities and onboarding, implementing regulatory standards in KYC, AML, and suitability processes. The use of cryptographic challenges and proofs, along with Zero-knowledge proof techniques, ensures that privacy is maintained and governance is enforced. These approaches promise to simplify the onboarding process, benefiting both investors and financial institutions.
About the trailblazing entities
Arta TechFin Corporation Limited (HKSE: 0279), a hybrid financial (HyFi) platform, serves as a bridge connecting traditional finance with the blockchain-centric financial system through cutting-edge technological innovations. Their all-inclusive regulated solution provides a platform for corporates, financial institutions, and family offices to delve into both traditional and digital assets. Arta TechFin, with its numerous subsidiaries, holds licenses under the Hong Kong Securities and Futures Commission and other esteemed financial institutions.
Chainlink Labs, on the other hand, is a titan in the world of decentralized computing. As the primary developer behind Chainlink, they have positioned themselves at the forefront of creating a verifiable web. Their collaborations with major financial institutions like Swift, DTCC, and ANZ, and top Web3 teams, including Aave and Synthetix, have cemented their reputation in the sector.
In this promising partnership, the convergence of traditional finance with the decentralized world is set to achieve new milestones, ushering in a new era of investment and financial operations.
Conclusion
In a monumental move, Arta TechFin and Chainlink Labs have embarked on a collaboration poised to redefine the financial landscape. By seamlessly integrating the advantages of both Decentralized and Traditional Finance, this partnership is setting the stage for a harmonized investment environment. With innovative fund tokens, transparent data feeds, and the promise of heightened security, the fusion of these two financial giants offers a promising future for investors and the broader financial market. As the boundaries between traditional and decentralized systems blur, this venture exemplifies the transformative potential of collaboration in the age of blockchain.