- Arbitrum DAO’s $15.5M investment in RWAs marks one of the largest DAO-led treasury diversification moves in Web3.
- Growing RWA adoption in DeFi could drive Ethereum’s demand, strengthening its long-term market position.
A few years ago, Arbitrum DAO increased its Short-Term Incentive Program (STEP) budget by $23.4 million, funding 26 projects with 21.1 million ARB tokens, as previously reported by CNF. Now, the DAO is making another significant move by allocating $15.5 million into Real-World Assets (RWAs).
Strategic Investment Through STEP 2.0
As announced today in a tweet, the Arbitrum DAO community approved the transfer of 35 million ARB tokens, equivalent to approximately $15.5 million at the current ARB price of $0.44, into stable assets.
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!
This initiative is part of the Stable Treasury Endowment Program (STEP) 2.0, which is designed to invest 1% of the DAO’s treasury into tokenized RWAs annually. The goal is to diversify holdings and capitalize on the growth of the RWA sector to generate yield.
Building on Previous Success
This latest $15.5 million allocation builds upon the 35 million ARB allocated in STEP 1.0 and 15 million ARB from prior treasury management efforts, bringing Arbitrum’s total RWA investments to 85 million ARB. Notably, the initial phase of STEP has already accrued $450,000 in interest for the DAO, demonstrating the program’s effectiveness in generating passive income.
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
As further detailed in the tweet, the Stable Treasury Endowment Program (STEP) is an ArbitrumDAO initiativeaimed at driving RWA adoption, diversifying the treasury into stable assets, and generating yield uncorrelated to crypto market volatility.
Collaborations with Financial Giants
Arbitrum’s expansion into RWAs has attracted major financial institutions. In July 2024, the DAO invested in BlackRock’s BUIDL, Ondo Finance’s USDY, and Superstate’s USTB.
These partnerships have significantly boosted Arbitrum’s RWA market share, which surged from approximately $100,000 at the start of 2024 to nearly $70 million by year-end.
Implications for the DeFi Ecosystem
By integrating RWAs into its treasury, Arbitrum DAO not only enhances its financial stability but also fosters the growth of tokenized assets within the DeFi space.
Arbitrum’s growing influence in the RWA sector could also have ripple effects on Ethereum (ETH), given that many tokenized assets operate on the Ethereum network. As institutional adoption of RWAs expands, ETH could see increased demand, potentially driving its price higher in the long run.
Currently, Ethereum (ETH) is trading at $2,714.46, reflecting a 1.65% increase in the past 24 hours and 3.06% in the past week. See ETH price chart below.
