- Every year, 1% of the DAO’s treasury funds will be invested into real asset products by Arbitrum’s STEP Committee.
- ARB 35 million is about to be invested by the Arbitrum DAO in on-chain real-world asset (RWA) goods.
After putting up a shortlist of 17 initiatives, the Arbitrum Stable Treasury Endowment Program (STEP) Committee announced on June 23 that it had selected six RWA products to diversify treasury assets.
We only chose six goods from the shortlist of 17 that was previously given, according to the STEP Committee, in order to avoid spreading the funding too thinly and raising operational or default risk that could result in a loss of principle.
The STEP Committee intends to invest 4 million ARB in Mountain’s USDM, OpenEden’s TBill, and Backed Finance’s blB01, 11 million ARB in BlackRock’s BUIDL via Securitize, and 6 million ARB in both Ondo’s USDY and Superstate’s USTB. According to STEP, each project’s assets under management (AUM) dictated the size of the allocations.
The suggested plan of the STEP Committee is open for public feedback for approximately ten days prior to the formal snapshot governance vote announcement.
The price of ARB has increased by 6.47% over the last day to trade at $0.829, as per the Defiant’s cryptocurrency price feeds.
The committee stated that it intends to allocate 1% of Arbitrum’s annual Treasury to RWAs.
According to the announcement, the committee declined to invest in projects that use their own proprietary blockchain, hire inexperienced fund managers, have redemption delays of more than a few weeks, or charge fees that aren’t competitive with those in other markets.
RWA growth on-chain
The announcement is the most recent illustration of on-chain RWAs’ growing popularity. Rwa.xyz reports that in 2024, the market capitalization of on-chain securities increased by 121% to $1.72 billion.
The STEP Committee supported subsidizing the acquisition of Moody ratings as part of a broader range of support for RWAs than just increasing the AUM of products.
With an a-bf rating, OpenEden’s TBILL became the first tokenized U.S. Treasury instrument to be given an a-grade rating by Moody’s on June 17.
Leading L2s Arbitrum and Base maintain their advantage over
Since the beginning of May, Arbitrum and Base have been expanding their lead over the Layer 2 market.
According to data from GrowThePie, Base has increased by 38% to 501,400 active addresses during the same period, while Arbitrum has seen a 110% increase to 745,510 since the beginning of May. After falling 46%, ZkSync comes in third place with 239,140, and Linea comes in second with 180,060 after falling 21.6%.
In terms of transactions, Arbitrum is up 47% to 2.57 million, only behind Base, which is up 41% to 3.31 million. In contrast, Base comes in second place with 529,300, and ZkSync Era ranks third with 537,000.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
