Key Notes
- Arbitrum DAO has generally become more interested in the world of tokenization.
- BlackRock and Franklin Templeton are core contributors to the growing RWA presence on Arbitrum.
Arbitrum DAO is moving further into the Real-world Assets (RWA) investment arena with a commitment of $15.5 million. Following the concession from its community members, the protocol took to X to announce that it would allocate 35 million ARB into various stable assets.
Arbitrum Transcends from STEP 1.0 to 2.0
The ARB token was trading at $0.4516 after losing 6.06% of its market value. The Arbitrum DAO allocation is worth around $15.7 million at this price rate.
The protocol obtained this fund from its Stable Treasury Endowment Program (STEP). It is worth noting that this program (STEP 1.0) had previously allocated 35 million ARB $0.47 24h volatility: 0.1% Market cap: $2.08 B Vol. 24h: $226.20 M to investments in six products as far back as June 2024.
By design and purpose, STEP was conceived to invest 1% of the Arbitrum DAO treasury into tokenized RWAs . Ultimately, the program aims to diversify the DAO’s treasury and leverage the sector’s growth to generate yield. This new $15.5 million allocation is part of the STEP 2.0 initiative.
Altogether, the 35 million ARB from STEP 1.0, 15 million ARB from treasury management, and the latest 35 billion ARB from STEP 2.0 add up to the total RWA investments of 85 million ARB. Arbitrum DAO’s RWA investment is valued at approximately $38.25 million based on the coin’s current price.
1/ ArbitrumDAO goes all-in on RWAs!
The DAO just approved 35M ARB for RWAs via STEP 2.0. This brings the total RWA investments from the DAO treasury to 85M ARB, one of the largest DAO-led RWA allocations in Web3! https://t.co/2P6MDSK4PK
— Arbitrum Governance (@arbitrumdao_gov) February 18, 2025
The protocol reckons that this STEP fund is currently one of the largest operated by a DAO in Web3. Regarding profit, the Arbitrum Foundation said, “So far, STEP has accrued $450K in interest for the DAO.”
Arbitrum DAO has generally become more interested in the world of tokenization. Nine months ago, the community opened its arm to assets like BlackRock’s BUIDL, Ondo Finance’s USDY, and Superstate’s USTB. It has also signaled allocation for Mountain Protocol’s USDM, OpenEden’s TBILL, and Backed Finance’s bIB01.
Notably, investment asset management firms BlackRock and Franklin Templeton are core contributors to the growing RWA presence on Arbitrum. Both firms have launched a couple of their products and services on Arbitrum. From standing at around $100,000 at the start of the year, the network’s RWA market value has jumped to approximately $70 million.
More Tokenization Partnerships in Web3
Other protocols, apart from Arbitrum DAO, also have a deep interest in tokenization. About a week ago, Plume Network entered a new partnership with Mercado Bitcoin to tokenize $40 million in assets on Plume’s blockchain. This includes asset-backed securities, consumer credit, corporate debt, and accounts receivable.
In the long run, this may unlock real yield opportunities for millions of Brazilian residents. The initiative is a strategy to provide new funding opportunities to small and medium enterprises (SMEs) in the country while allowing global investors to access diversified assets through a regulated, established exchange.
“On one hand, we’re providing small and medium-sized businesses … with a direct path to funding through tokenization. On the other hand, we’re empowering local and global investors with access to innovative financial instruments that were once out of reach,” Fabrício Tota, Mercado Bitcoin’s New Business Development SVP, said.
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