The Arbitrum DAO has announced a strategic move to allocate 35 million $ARB tokens toward real-world asset (RWA) initiatives, specifically focusing on tokenized U.S. Treasury bills. This landmark decision marks a significant milestone in the convergence of decentralized finance (DeFi) and traditional finance (TradFi), reinforcing Arbitrum’s leadership in driving institutional adoption of blockchain-based financial instruments.
The funds will be distributed across three leading RWA platforms: Franklin Templeton’s $BENJI, Spiko’s $USTBL, and WisdomTree’s $WTGXX—all of which offer blockchain-based representations of short-term U.S. government debt. With this allocation, Arbitrum aims to strengthen the stability and yield-generating potential of its treasury while accelerating the mainstream integration of tokenized assets.
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Strategic Selection from Over 50 Applicants
The final selection was made after a rigorous evaluation process involving more than 50 applicants from the TradFi and RWA ecosystems. The competitive vetting highlights Arbitrum DAO’s commitment to quality, transparency, and long-term value creation.
The 35 million $ARB allocation will be split as follows:
- **Spiko ($USTBL): 35%** – 12.25 million $ARB
- **Franklin Templeton ($BENJI): 35%** – 12.25 million $ARB
- **WisdomTree ($WTGXX): 30%** – 10.5 million $ARB
This diversified approach ensures risk mitigation while supporting multiple trusted players in the emerging tokenized asset space. Each project brings unique strengths in compliance, custodial infrastructure, and yield delivery—key factors in attracting institutional participation.
The initiative is part of the Stable Treasury Endowment Program (STEP), a forward-thinking strategy launched by Arbitrum DAO over six months ago to diversify its treasury holdings into low-volatility, income-generating real-world assets. Since inception, STEP has generated over $650,000 in yield, demonstrating both feasibility and profitability of integrating RWAs into decentralized governance models.
Franklin Templeton: Bridging Traditional Finance and Web3
Franklin Templeton, a global asset management leader with approximately $1.53 trillion in assets under management (AUM), has been at the forefront of blockchain innovation among traditional financial institutions. Through its Benji platform, the firm offers digital asset solutions focused on tokenized funds and regulated blockchain products.
$BENJI represents Franklin Templeton’s foray into on-chain asset tokenization, allowing investors to access fractionalized U.S. Treasury bills via blockchain rails. The integration of regulatory compliance, institutional-grade custody, and transparent settlement makes it a trusted choice for DeFi protocols seeking secure yield sources.
By partnering with Arbitrum DAO, Franklin Templeton further validates the growing demand for interoperable financial systems where DeFi protocols can leverage regulated, income-producing instruments without sacrificing decentralization or transparency.
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WisdomTree Connect: Innovating ETFs with Blockchain
WisdomTree, a pioneer in exchange-traded funds (ETFs) and exchange-traded products (ETPs), has extended its innovation into blockchain through WisdomTree Connect, a platform designed to bridge traditional capital markets with decentralized ecosystems.
$WTGXX offers tokenized exposure to U.S. Treasury securities, enabling seamless transferability, faster settlement, and enhanced liquidity compared to traditional instruments. The product adheres to strict regulatory frameworks while leveraging public blockchains for transparency and auditability—making it ideal for DeFi treasuries like Arbitrum’s that prioritize both security and yield efficiency.
With this partnership, WisdomTree continues to solidify its position as a leader in hybrid finance (HyFi), where regulated financial products meet open-access protocols.
Spiko: Emerging Leader in RWA Infrastructure
Spiko stands out as a rising force in the RWA ecosystem, specializing in bringing high-quality, yield-generating sovereign debt on-chain. Its $USTBL token represents short-duration U.S. Treasury bills backed by real-world collateral and verified custodial arrangements.
What sets Spiko apart is its focus on capital efficiency, transparency, and interoperability—key traits that resonate with Layer 2 ecosystems like Arbitrum that emphasize scalability and user-centric design. By allocating a significant portion of the STEP funds to $USTBL, Arbitrum DAO signals confidence in emerging RWA builders who combine financial rigor with technical innovation.
All three selected platforms share a common foundation: they tokenize U.S. Treasury bills, one of the safest and most liquid assets globally. This alignment ensures that Arbitrum’s treasury maintains high credit quality while generating consistent returns in a volatile crypto market.
Why This Matters for the Future of DeFi
This strategic allocation underscores a broader trend: DeFi protocols are maturing. No longer reliant solely on speculative yield or liquidity mining incentives, projects like Arbitrum DAO are adopting sophisticated treasury management practices akin to sovereign wealth funds or endowments.
Tokenized U.S. Treasuries provide:
- Low correlation with crypto markets
- Predictable yield streams
- Regulatory clarity
- High liquidity and creditworthiness
These attributes make them ideal for stabilizing protocol-owned liquidity and funding long-term development—without exposing the DAO to excessive risk.
Moreover, this move sends a powerful signal to institutional investors: blockchain-based finance is ready for prime time. When established names like Franklin Templeton and WisdomTree collaborate with decentralized networks, it fosters trust, encourages further innovation, and paves the way for trillions in off-chain assets to enter on-chain ecosystems.
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Frequently Asked Questions (FAQ)
Q: What is the purpose of Arbitrum DAO’s 35 million $ARB allocation?
A: The allocation aims to diversify Arbitrum’s treasury into low-risk, yield-generating real-world assets (RWAs), particularly tokenized U.S. Treasury bills, through its Stable Treasury Endowment Program (STEP).
Q: Which projects received funding from Arbitrum DAO?
A: The three selected platforms are Franklin Templeton ($BENJI), Spiko ($USTBL), and WisdomTree ($WTGXX), chosen from over 50 applicants based on their track record, compliance standards, and technical capabilities.
Q: How much yield has STEP generated so far?
A: Since its launch over six months ago, the STEP program has generated more than $650,000 in revenue for the Arbitrum DAO treasury.
Q: Are tokenized U.S. Treasuries safe investments?
A: Yes, they are considered among the safest assets globally due to the backing of the U.S. government. When properly structured with transparent custody and auditing, tokenized versions maintain these qualities while adding blockchain benefits like 24/7 settlement and programmability.
Q: What does this mean for the future of DeFi?
A: It signifies a shift toward sustainable, institution-grade financial models in DeFi, where protocols manage treasuries responsibly using real-world yields instead of relying solely on inflationary token emissions or volatile trading fees.
Q: Could other DAOs follow Arbitrum’s example?
A: Absolutely. As more protocols seek stable revenue streams and reduced exposure to crypto market swings, integrating tokenized RWAs like U.S. Treasuries will likely become standard practice across the ecosystem.
This bold step by Arbitrum DAO exemplifies how decentralized organizations can evolve into financially resilient entities capable of long-term impact. By embracing regulated, income-producing assets through trusted partners, Arbitrum is not just securing its own future—it’s helping define the future of finance itself.