Arta TechFin partners with Chainlink Labs

Arta TechFin develops regulated, interoperable fund tokens on major chains to help clients maintain their native token community while generating fiat-based returns from TradFi markets via the Arta platform. Products and services are subject to regulatory approval, with Arta Global Markets and its licenced partners acting as placing agents and investment managers for them and any other regulated distributed ledger technology (DLT) based financial products.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) provides secure transfers of tokens across public and private blockchains and enables market liquidity and token transfers in return for tokenised cash or stablecoins. Chainlink Data Feeds offer reliable and transparent data for Net Asset Value (NAV) reporting, while also creating a source of truth for NAV data which can be published on-chain and made available to all market participants. This aims to ensure that they have access to accurate and up-to-date NAV information. Moreover, Chainlink Proof of Reserve can verify that on-chain fund tokens are backed and secured by designated assets under traditional and cryptocurrency custodians. 

According to officials, Arta develops cross-chain-enabled regulated fund tokens supported by Chainlink Proof of Reserve and CCIP to bring a simplified investing experience to global Web3 users. Currently, there is a considerable demand from Web3 users, traditional investors, and regulators for secure, socially responsible, and fully on-chain investment products. With the integration of Chainlink CCIP and Proof of Reserve, Arta can develop a regulated fund token that provides an improved user experience. The company’s solution intends to enhance native token communities by increasing the participation of financial institutions. Furthermore, fiat investment returns generated by Arta’s products offer additional liquidity and assets to Web3 communities, while the company’s fund tokens supported by Chainlink aim to make programmable payment and investment more efficient, secure, and accessible. 

The regulated, interoperable fund tokens developed by Arta and supported by Chainlink provide substantial parts of the DeFi experience, including atomic settlement, proof of reserve, cross-chain interoperability, and automated market making. The investment solution incorporates investment in risk-free US Treasuries and other securities to offer risk-adjusted absolute return with daily liquidity. Through Arta’s platform, which provides API-based trading and settlement, investors can review asset allocation and portfolio performance.

Moreover, the interoperable fund tokens manage money through smart contracts, with investors only being required to pre-set information such as redemption date and expected investment return when placing an order. The investment products are fiat-based, aiming to mitigate counterparty and settlement risk. In addition to the fund tokens, Arta TechFin develops VC-based identities and onboarding, with the former implementing regulatory standards in Know Your Customer (KYC), Anti-Money Laundering (AML), and suitability process. Cryptographic challenges and proofs and Zero Knowledge proof techniques are instituted to perverse privacy and enforce governance. Through this, Arta aims to enhance compliance control and reduce repetitive entries in onboarding for investors and financial institutions. 

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