Arta TechFin and Chainlink Labs Partner to Innovative Fund Tokens
In a monumental stride towards harmonising traditional and decentralised finance, Arta TechFin Corporation Limited, trading under “Arta,” has announced a pioneering partnership with Chainlink Labs. The primary objective of this collaboration is the development of regulated, interoperable fund tokens on major blockchains, with a vision to reshape the future of investments.
Revolutionising the Investment Landscape
Arta TechFin is poised to revolutionise the investment landscape by merging the strengths of Decentralised Finance (DeFi) and Traditional Finance (TradFi). Their goal is to create fund tokens that enable secure transfers across both public and private blockchains, ensuring the highest level of security and liquidity. A cornerstone of this partnership is the incorporation of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which not only guarantees the utmost security but also facilitates market liquidity by enabling tokenised cash and stablecoin exchanges, commonly known as atomic settlements or Delivery vs. Payment.
Moreover, Chainlink’s Data Feeds will ensure the transparency and reliability of Net Asset Value (NAV) reporting. This real-time NAV data will be available to all market participants, enhancing decision-making capabilities. Another critical feature is Chainlink’s Proof of Reserve, which confirms that the on-chain fund tokens are backed by designated assets safeguarded by traditional and crypto custodians.
Eddie Lau, Co-CEO of Arta TechFin, expressed his optimism about the collaboration. He emphasised, “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 Era for Web3 Investors
Arta’s fund tokens are set to usher in a new era for Web3 users. These tokens encapsulate the core benefits of DeFi, including atomic settlements, proof of reserve, cross-chain interoperability, and automated market making. The investment strategy primarily involves risk-free US Treasuries and other securities to achieve optimal risk-adjusted returns combined with daily liquidity.
One of the standout features of these tokens is the use of smart contracts to manage investments. Investors only need to input details such as the redemption date and the anticipated investment return, after which the smart contract will autonomously execute the order. These investment products are fiat-based, significantly reducing counterparty and settlement risks.
Enhanced Compliance and Privacy
Arta TechFin is at the forefront of developing VC-based identities and onboarding processes. They implement best-practice regulatory standards in know-your-client (KYC), Anti-money-laundering (AML), and suitability processes. Cryptographic challenges, proofs, and Zero-knowledge proof techniques are being applied to preserve privacy and enforce governance. These innovative approaches promise to simplify the onboarding process, benefiting both investors and financial institutions.
About Arta TechFin and Chainlink Labs
Arta TechFin Corporation Limited (HKSE: 0279) serves as a bridge connecting traditional finance with the blockchain-centric financial system through cutting-edge technological innovations. Their all-inclusive regulated solution allows corporates, financial institutions, and family offices to delve into 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 leader in the world of decentralised 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, ANZ, and top Web3 teams, including Aave and Synthetix, have cemented their reputation in the sector.
Conclusion
In a groundbreaking move, Arta TechFin and Chainlink Labs have embarked on a partnership set to redefine the financial landscape. By seamlessly integrating the advantages of both Decentralised and Traditional Finance, this collaboration is paving the way for a harmonised investment environment. Innovative fund tokens, transparent data feeds, and heightened security are the cornerstones of this fusion, offering a promising future for investors and the broader financial market. As the boundaries between traditional and decentralised systems blur, this venture exemplifies the transformative potential of collaboration in the age of blockchain.
