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Arbitrum DAO Invests 35 Million ARB in On-Chain RWA Products

The Arbitrum DAO is set to invest 35 million ARB into on-chain real-world asset (RWA) products. On June 23, the Stable Treasury Endowment Program (STEP) Committee announced its decision to diversify treasury assets with six selected RWA products from a shortlist of 17 projects.

Selected On-Chain RWA Products

To minimize risk and avoid spreading resources too thin, the STEP Committee selected only six products from the initial shortlist. The committee plans to invest 11 million ARB into BlackRock’s BUIDL via Securitize, 6 million ARB into both Ondo’s USDY and Superstate’s USTB, and 4 million ARB into Mountain’s USDM, OpenEden’s TBill, and Backed Finance’s blB01. The allocation sizes were based on the assets under management (AUM) of each project.

https://forum.arbitrum.foundation/t/step-committee-recommendations/25097

Community Involvement and Governance

Community members have roughly 10 days to comment on the proposed investment plan before a formal snapshot governance vote. The STEP Committee aims to diversify 1% of Arbitrum’s Treasury into RWAs annually. They ruled out projects using proprietary blockchains, those hiring inexperienced fund managers, projects with long redemption delays, and those with non-competitive fees.

Growth of On-Chain RWAs

The adoption of on-chain RWAs is growing, with the market cap of on-chain securities increasing by 121% to $1.72 billion in 2024, according to Rwa.xyz. The STEP Committee is pushing for broader support for RWAs, including subsidizing Moody ratings. OpenEden’s TBILL recently became the first tokenized U.S. treasuries asset to receive an “a”-grade rating from Moody’s.

Arbitrum and Base Lead in Layer 2 Sector

Arbitrum and Base are strengthening their positions in the Layer 2 sector. Data from GrowThePie shows Arbitrum’s active addresses growing by 110% to 745,510 since May, with Base up 38% to 501,400. Arbitrum’s transaction count increased by 47% to 2.57 million, second only to Base at 3.31 million.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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