<p style="text-align: left;"><span data-contrast="auto">Decentralized finance (DeFi) startup Arch has raised $5 million to try to achieve the lofty goal of becoming the "BlackRock of web3."</span></p> <p><span data-contrast="auto">The oversubscribed seed round was co-led by Digital Currency Group and SoftBank spinoff Upload Ventures. Other investors included the venture arm of Latin America blockchain firm Ripio, TechStars and GBV, Arch said in a company release.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The startup aims to make investing in DeFi accessible to the everyday investor.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“We kept hearing stories of people who, for instance, wanted to get into crypto, and the only option they really had was going out to exchange and buy this single token that a friend had recommended to them that they really didn't know anything about,” said Christopher Storaker, co-founder and CEO of Arch, in an interview with The Block. “They were basically putting all their eggs in one basket.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Storaker says diversification is the only free lunch in finance and wants to make it simple for the web3 ecosystem. His decentralized asset management protocol creates well-diversified tokenized investment portfolios that individuals will be able to buy via a smart contract and then self-custody, he said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>Going head-to-head with BlackRock</h2> <p><span class="TextRun SCXW97717262 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW97717262 BCX0">But w</span><span class="NormalTextRun SCXW97717262 BCX0">hy</span><span class="NormalTextRun SCXW97717262 BCX0"> should an investor</span> <span class="NormalTextRun SCXW97717262 BCX0">use Arch</span><span class="NormalTextRun SCXW97717262 BCX0"> instead of buying a crypto exchange-traded product from a big player like BlackRock or 21Shares?</span><span class="NormalTextRun SCXW97717262 BCX0"> </span> <span class="NormalTextRun SCXW97717262 BCX0">Especially as BlackRock </span><span class="NormalTextRun SCXW97717262 BCX0">increasingly </span></span><a class="Hyperlink SCXW97717262 BCX0" href="https://www.theblock.co/post/173669/blackrock-launches-etf-in-europe-with-blockchain-and-crypto-company-exposure" target="_blank" rel="noreferrer noopener"><span class="TextRun Underlined SCXW97717262 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="none"><span class="NormalTextRun SCXW97717262 BCX0" data-ccp-charstyle="Hyperlink">makes moves into</span></span></a><span class="TextRun SCXW97717262 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW97717262 BCX0"> crypto.</span></span><span class="EOP SCXW97717262 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Storaker says Arch will take a different approach by going beyond just Bitcoin and Ethereum to provide investors exposure to the cutting edge of what’s happening in web3.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“When we say ‘BlackRock of web3,’ we really want to be on par on the methodology side with what they do and what people expect from passive products,” Storaker said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The team also wants to ensure that the transition of capital from web2 to web3 is as seamless as possible for newcomers to the space.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“It's not something that comes naturally,” he added. “But I think people are willing to try it.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>Tapping into the everyday investor</h2> <p><span data-contrast="auto">This is why Ripio Ventures, the venture arm of Latin America-based blockchain firm Ripio, decided to back the team. They said Arch has the potential to touch millions of users in Latin America and offers potential collaboration opportunities for Ripio.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Ripio currently has about 3.5 million users, mainly in Argentina and Brazil, a Ripio spokesperson said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“What Arch offers is a solution that is interesting because it's bringing in something that is complex ... [and] making it easy for everyone to do it,” said Andres Fleischer, managing partner of Ripio Ventures.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Arch is currently built on Ethereum rails. Primarily because it’s an order of magnitude greater than any other ecosystem, Storaker said.</span></p> <h2>Are tokens securities?</h2> <p><span data-contrast="auto">Offering tokenized products to the average investor does, however, create challenges.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Securities and Exchange Commission (SEC) Chairman </span><a href="https://www.theblock.co/post/170050/sec-to-recommend-flexible-pathway-for-token-registration-gensler"><span data-contrast="none">Gary Gensler has repeatedly reiterated</span></a><span data-contrast="auto"> that he believes “most crypto tokens are securities” and that many intermediaries need to register with the SEC, "whether they call themselves centralized or decentralized.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“We have been working with counsel almost from day one, in making sure that we don't run afoul of regulation here in the U.S. and elsewhere,” Storaker said. “For us that means sometimes going slower than then you might have done otherwise, but so you don't mess up." </span></p> <p>The platform will offer two index-tokens: the Arch blockchain token, which tracks the world's largest blockchains, and the Arch Ethereum Web3 token, which tracks native tokens of major protocols like Chainlink and Uniswap.</p> <p><span data-contrast="auto">Arch previously raised a pre-seed round and went through the TechStars accelerator program. </span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The new funds from the round will be used to tokenize a wider suite of decentralized finance indices and to develop the platform into a decentralized asset management protocol.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>