In a move as bold as it is brazen, Arbitrum DAO has decided to sprinkle $15.5 million into the world of Real-world Assets (RWA). Following a democratic display of hand-wringing and head-nodding, the protocol made a grand declaration on platform X: they would lavish 35 million ARB on various stable assets. Ah, the thrill of the spend!
Arbitrum’s Leap From STEP 1.0 to 2.0: A Quantum Leap?
As the ARB token took a gentle 6.06% nosedive to $0.4516, the DAO’s allocation swelled to a juicy $15.7 million. A financial rollercoaster ride, indeed!
This windfall was birthed from the Stable Treasury Endowment Program (STEP), a.k.a. STEP 1.0, which had previously sprinkled 35 million ARB into six lucky investment products back in June 2024. What a time to be alive!
STEP was cunningly crafted to sink 1% of the DAO’s coffers into tokenized RWAs. The ultimate dream? Diversify the DAO’s piggy bank and milk the sector’s growth for all it’s worth. This new allocation is but a chapter in the saga of STEP 2.0.
Adding up the ARB from STEP 1.0, the ARB from treasury management, and the ARB from STEP 2.0, we arrive at a grand total of 85 million ARB in RWA investments. At current coin prices, that’s a treasure chest valued at approximately $38.25 million. Cha-ching!
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! #Ballin
— Arbitrum Governance (@arbitrumdao_gov) February 18, 2025
The protocol boasts that this STEP fund is one of the beefiest in Web3, operated by a DAO no less. Regarding profits, the Arbitrum Foundation quipped, “STEP has raked in $450K in interest for the DAO. Not bad for a day’s work!”
Arbitrum DAO has developed a keen interest in the tokenization universe. Nine months ago, it warmly embraced assets like BlackRock’s BUIDL, Ondo Finance’s USDY, and Superstate’s USTB. It’s even eyeing Mountain Protocol’s USDM, OpenEden’s TBILL, and Backed Finance’s bIB01 for future allocations.
It’s worth noting that investment bigwigs BlackRock and Franklin Templeton are the unsung heroes behind Arbitrum’s growing RWA presence. They’ve launched a plethora of products and services on Arbitrum, boosting the network’s RWA market value from a modest $100,000 to a whopping $70 million. A true rags-to-riches story!
Tokenization: The New Love Language in Web3
Tokenization has caught the eye of other protocols, not just Arbitrum DAO. Plume Network recently tied the knot with Mercado Bitcoin, vowing to tokenize $40 million in assets. A match made in financial heaven!
This union may soon unlock a treasure trove of yield opportunities for Brazilians. It’s a win-win: SMEs get funding, and investors get access to a smorgasbord of diversified assets. Bon appétit!
“On one hand, we’re providing SMEs with a direct path to funding through tokenization. On the other hand, we’re empowering investors with access to financial instruments that were once the stuff of dreams,” said Fabrício Tota, Mercado Bitcoin’s New Business Development SVP.
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2025-02-19 01:50