Arcadia Capital announces its new digital token in partnership with Red Matter
Arcadia Capital is targeting $25 million to be raised on Red Matter’s digital token platform. The terms and conditions of Arcadia’s offering is available here.
“Equity tokens issued on a blockchain platform are potentially the most disruptive threat to existing equity markets.” (World Economic Forum)
Arcadia’s Digital Token
New digital platforms created by decentralized finance companies, such as Red Matter, integrate securities and other digital assets comprehensively. The platforms enable asset managers like Arcadia to issue, trade, settle, and provide custody services for digital assets, usually consisting of digitally native equity tokens (ICOs).
This innovation is exemplified by Arcadia Digital Token Arcadia’s Digital Token
Digital asset platforms, such as Red Matter, exist in parallel to existing market infrastructure and securities markets. Arcadia’s offering is an alternative digitized version of a typical standard asset management investment in Arcadia’s investment fund.
Arcadia Capital is taking advantage of this transformative technology to present an opportunity to any qualified investor anywhere in the world to invest in our digital token.
Fundamentally, what is disruptive is that this innovative technology disintermediates all parties, creating effectiveness and efficiency in the transfer and recording of transactions that is unprecedented in legacy infrastructure.
Investors can own verifiable profit participation in Arcadia’s business seamlessly and transparently with the potential for immediate liquidity. The investor does not have to request a distribution or redemption. This is a fundamental disruption to asset management, and Arcadia is proud to participate.
Digital platforms created with distributed ledger technology accomplish several things quite effectively:
- Introduce a single, verified source for all aspects of security, including ownership and trading activities
- Enable digital securities (ICOs)
- Settle trades on a shorter and more flexible timeline
- Investors and issuers interact directly with market infrastructure or each other instead of a central authority or intermediary
- Faster end-to-end process times
Why bother being part of a transaction that is disrupting a global industry that is working fairly well? Some of these benefits can make all the difference and create substantial value:
- Greater transparency for all parties
- Significantly simplified operations
- Automating all securities clearing, settling, and compliance
- Issuers, such as Arcadia Capital, can list directly and have greater transparency of ownership without relying on intermediaries, lowering the cost of capital significantly
The Future of Asset Management is Here
The single most disruptive long-term development from digital assets enabled by Distributed Ledger Technology may be in asset management. Asset management is central to the capital markets ecosystem, representing a large share of investment dollars globally.
In addition to being actively involved in the broader markets that are being transformed by Distributed Ledger Technology, asset managers face inefficiencies and other challenges for which distributed ledgers and smart contracts offer solutions, including:
- Streamlining client investment by allowing direct investment via a liquid digital token
- Enhancing liquidity for all investors – redemption no longer requires fund management approval and prices are established by an independent market providing immediate liquidity for each investor without needing the approval of the asset managers
- Improving data sharing among all investors and advisors enabling immediate access to all information
- Transforming back-office operations to be faster, more accurate, and efficient
Asset Management Transformation
Arcadia Capital believes those fund assets tokenized and issued digitally will transform asset management. Tokenized fund shares will be tied directly to underlying asset pools via smart contracts, and traditional fund structures will be replaced by fully customizable portfolios.
Given the central role of asset managers in allocating capital globally, asset management firms and the ecosystems that service them will be affected by digitization. Faster or more flexible trade settlement, shared resources on securities or derivatives transactions, and operational simplification will all have implications for fund managers, custodians, and fund administrators.
Investors in Arcadia Capital’s Red Matter offering will have shared, real-time data on Arcadia’s portfolio value and greatly simplify valuation, accounting, and liquidity, especially from new digital-native asset classes or fund ownership.
Once in a Generation
Creating actual efficiency for “efficient markets”
Fundamentally transforming markets requires new ways of thinking. Existing inefficiencies and limitations create an unprecedented opportunity for new thinking in the global financial markets by applying distributed ledger and smart contract technology.
Arcadia is proud to participate in this fundamental transformation.
Arcadia, along with other asset managers, can create an opportunity to fundamentally reimagine how capital markets operate, and this may be a once-in-a-generation opportunity.
- Distributed Ledger Technology can eliminate unnecessary complexity and redundancy for investors and asset managers. It creates more efficient business operations, client interaction, and access.
- Arcadia is available to any appropriate investor anywhere. This offering is an example of how financial markets can become substantially more efficient – enabling global access to investment opportunities – such as Arcadia Capital’s offering.
Arcadia can deliver its asset management opportunity more efficiently to a broader range of investors and financiers and connect the sources of capital to users of capital much more effectively. It is one of the greatest potential opportunities in the world’s largest industry.