🌎 Arbitrum DAO Invests 35 Million ARB in Stable Assets

Arbitrum DAO Expands Real-World Asset Investments with 35 Million ARB Allocation

The Arbitrum DAO has approved a proposal to allocate 35 million ARB to various stable assets, further solidifying its presence in the real-world asset (RWA) market. This investment, valued at approximately $15.5 million, comes from the project’s Stable Treasury Endowment Program (STEP).

Understanding the Stable Treasury Endowment Program

STEP is an initiative aimed at investing 1% of the Arbitrum DAO treasury into tokenized RWAs. The program seeks to diversify the DAO’s treasury while leveraging sector growth to generate yield. This latest allocation is part of Arbitrum DAO’s STEP 2.0 initiative, adding to the 35 million ARB from STEP 1.0 and 15 million ARB from treasury management.

The total RWA investments now stand at 85 million ARB, making it one of the largest investments by a DAO. According to Arbitrum DAO, STEP has accrued $450K in interest for the DAO.

Previous Investments and Partnerships

In July last year, the Arbitrum community approved allocations to BlackRock’s BUIDL, Ondo Finance’s USDY, and Superstate’s USTB. Other tokenized asset products selected for investment included Mountain Protocol’s USDM, OpenEden’s TBILL, and Backed Finance’s bIB01.

Growth of Arbitrum’s RWA Market

Arbitrum’s growing presence in the RWA market is evident in the total amount of on-chain assets launched on the network in 2024. With BlackRock and Franklin Templeton among those expanding their products to Arbitrum, the network’s RWA market share surged from around $100,000 at the start of the year to approximately $70 million.

Here are some key statistics on the RWA market: