Stablecoins have a new way to play, this time anchoring US treasury bonds

according toCoindeskaccording toU.S. crypto asset management company Arca recently submitted a report to the U.S. Securities and Exchange Commission (SEC).prospectus

. Arca has applied to issue a security token (STO) — Arca UST Coin, which the company claims is a type of stablecoin that will be pegged to U.S. Treasury bonds.

Pegged to U.S. Treasuries

According to the prospectus, Arca is applying to issue an ERC-20 token on the Ethereum blockchain, the Arca UST Coin, which represents equity in Arca.

The initial price of Arca UST Coin is set at $1, and Arca defines it as a stable currency. However, Arca pointed out that the volatility of Arca UST Coin may be greater than other stablecoins on the market, but this volatility is still limited.

Most of the stablecoins that have appeared so far are anchored to the U.S. dollar. What asset is Arca UST Coin anchored to?

According to Arca, the assets anchored by Arca UST Coin are U.S. Treasury bonds and other bonds. The company plans to raise $25 million from the public, with a minimum investment of $1,000. Eighty percent of the proceeds will be invested in U.S. Treasuries, with the remainder invested in other bonds, including stocks issued in and outside the U.S., which is where the volatility comes from.

In addition, Arca UST Coin will not be listed on stock exchanges or other cryptocurrency exchanges, and investors' returns will come from bond dividends.

At present, the US SEC has not yet responded to Arca, and Arca hopes that the SEC can approve the product later this year.

Overall, Arca UST Coin is not actually a stable currency in the strict sense. Because the exchange ratio between Arca UST Coin and U.S. Treasury bonds is not disclosed in Arca’s prospectus, the token is issued based on the company’s equity and is just a kind of STO. National debt is only one of the income sources of Arca UST Coin. If Arca invests in gold, the rise and fall of gold will become the source of its token income.

Anchoring assets are very different

Since 2018, stablecoins have ushered in great development, but their anchored assets are different.

At present, the most common stablecoins on the market, including USDT, TUSD and the upcoming OKUSD of OK Group, are all anchored to the US dollar. Although it claims to have a 1:1 conversion ratio with the U.S. dollar, what ultimately determines the currency price is the amount of its actual reserve assets.

In addition, some stablecoins also choose to anchor digital assets, such as the stablecoin DAI launched by MakerDAO, which is obtained by pledging ETH. Although cryptocurrencies are highly volatile, the pledge rate of this type of stable currency is kept relatively high, so there is a large buffer space, and the price fluctuation of the currency will not be too large; in addition, its anchor assets are also stored in the chain On, open and transparent.AGLDThe third anchor asset is physical assets, such as gold and real estate can become reserve assets. On April 10 this year, AnthemGold, a blockchain game in Texas, launched a stablecoin anchored to gold.

, each token is backed by 1 gram of gold.As the market gradually becomes saturated, it is inevitable that there will be an interest rate war among stablecoins. according toInformed sources

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