Proceeds from the sale of AAA coin issues are placed into a ring-fenced SPV, which is allocated into cash and fixed income investments. AAA utilises currency diversification, returns from an underlying asset-class and price controls to create a stable currency.
Net Asset Value
AAA coin is an asset-backed cryptocurrency
Arc Fiduciary Ltd will allocate capital across the largest currencies as defined by the Bank of International Settlements trade-weighting analysis.
The largest currency exposure is likely to be USD, which facilitates a degree of correlation of ARC to USD.
Diversified lending and fixed income investments (including gilts) provide an attractive combination of delivering consistent and predictable returns in line with inflation, with low volatility and relatively good levels of liquidity.
AAA coin will target a return that keeps the currency stable in real terms - tracking the rate of inflation across G10 countries.
There will be an allocation to cash (and equivalents) to assist with liquidity.
AAA benefits from transparent and predictable controls to maintain pricing within a narrow band relative to value of the underlying assets; as well as acting as support against downside pricing pressures - 'natural buoyancy' - and to protect against over-speculation.
The controls enable flexible and non-dilutive issues of further currency, to respond quickly to increasing demand, and in compliance with regulatory frameworks.