EddieJayonCrypto

 25 Jun 24

tl;dr

The Arbitrum Endowment Committee recommends investing 35 million ARB in six RWA products to diversify and stabilize its treasury. The largest allocation of 11 million ARB is for BlackRock’s BUIDL Fund, with significant parts to Ondo Finance and Superstate’s funds. The total value of tokenized treasu...

The Arbitrum Endowment Committee recommends investing 35 million ARB in six RWA products to diversify and stabilize its treasury. The largest allocation of 11 million ARB is for BlackRock’s BUIDL Fund, with significant parts to Ondo Finance and Superstate’s funds. The total value of tokenized treasury product tokens has doubled since the year's start, reaching $1.72 billion in current valuation. The proposed investment aims to enhance Arbitrum’s financial stability and independence from the volatile crypto market, part of Arbitrum’s Stable Treasury Endowment Program. The carefully curated investments were selected from over 30 initial applications to the STEP program, reflecting a meticulous strategy to leverage existing assets under management and promote financial inclusivity.


The Arbitrum Endowment Committee recommends six RWA products, investing 35 million ARB to diversify and stabilize its treasury. The largest allocation of 11 million ARB to BlackRock’s BUIDL Fund, with significant parts to Ondo Finance and Superstate’s funds. Total value of tokenized treasury product tokens has doubled since year start, reaching $1.72 billion in current valuation.


The Arbitrum Endowment Committee is bridging traditional and decentralized finance with a proposed $27 million investment across six real-world asset (RWA) products to diversify its DAO treasury. This announcement was amped up by Ondo Finance through X (formerly Twitter), highlighting the allocation of over 17% of these assets into their US Dollar Yield Token (USDY) while noting they are currently unavailable in the U.S. market because of the regulatory restrictions.


The proposed investment, totaling 35 million ARB (approximately $27 million), aims to enhance Arbitrum’s financial stability and independence from the volatile crypto market. This move is part of Arbitrum’s Stable Treasury Endowment Program (STEP), designed to focus on investing in stable, liquid, and yield-generating real-world assets. The largest share, roughly 31% of the total funds, is earmarked for BlackRock’s BUIDL Fund with Securitize. This is followed by 6 million ARB each allocated to Ondo Finance’s US Dollar Yield Token and Superstate’s USTB Fund. The remaining funds are evenly distributed among Mountain Protocol’s USDM, OpenEden’s TBILL Fund, and Backed Finance’s bIB01 asset. These carefully curated investments were selected from over 30 initial applications to the STEP program, with the final six chosen to avoid “spreading the amount too thinly,” mitigating operational risks or the risk of principal loss. This decision reflects a meticulous strategy to leverage existing assets under management (AUM) to ensure stability and growth.


The interest in tokenizing real-world assets is growing, as evidenced by the doubling of the total value of all tokenized treasury product tokens, now standing at $1.72 billion compared to $778 million at the start of the year. This strategy not only enhances the liquidity of Arbitrum’s treasury but also promotes broader financial inclusivity by merging blockchain technology with conventional financial assets, setting a precedent for future blockchain use cases in asset management.

More about Stepstone Group Inc

Stock: Stepstone Group Inc

Sector: Finance

Industry: Investment Advice

Contact: 5054857000

Current Price: $49.09

Price Change: $0.83

Change (%): 0.91%

PE Ratio: 11.21

EPS: $0.0816

Market Cap: 711631000

52-Week Range: $42.89 - $0.092

Dividend Yield: 1.07%

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