As cracks begin to show in what could be an overstretched crypto market, the Arbitrum DAO voted to be conservative yesterday. The community decided to diversify its treasury holdings by allocating a large chunk of its ARB tokens to tokenized real-world assets (RWAs).
Results show that an overwhelming majority, over 181 million ARB, supported the idea, with only 7.45 million ARB rejecting this proposal. Fewer than 5.6 million ARB voted to abstain.
Arbitrum DAO Diversifies With Tokenized RWAs
The idea of diversifying the ARB treasury was first floated in late January 2027, but voting started on January 31 and ended on February 15. Since many ARB holders support this proposal, the Arbitrum DAO executed it yesterday, February 18. The impact of this proposal has already been tested, with simulations showing no signs of threats.
Arbitrum is now committing 35 million ARB to tokenized RWAs, which will generate more revenue for the DAO. It is important to note that this decision will push the allocation from Arbitrum DAO to 85 million. Effectively, this makes Arbitrum one of the largest DAOs directly investing in RWAs.
Supporters are convinced that the success of the first phase of the Stable Treasury Endowment Program (STEP) drew institutional players. Therefore, the decision to ride with the trends could aid in fast-tracking Arbitrum’s and its RWA ecosystem’s growth.
By gaining exposure to tokenized United States Treasuries offered by BlackRock’s BUIDL and other products by Ondo Finance, the DAO is shielding itself from ARB’s volatility.
The hedge means that Arbitrum will continue receiving a yield from their RWA investments regardless of prices. STEP 1 already raked in over $450,000 in interest for the Arbitrum DAO, funds which can be used to offset operational costs.
(Source)
The decision to channel funds into tokenized assets also aligns with broader trends. Since early 2024, the RWA ecosystem has rapidly grown from around $100,000 to nearly $70 million. This shows that investors are confident in RWAs and expect the industry to grow even more.
BoLD Activated, Will ARB Recover?
On the security front, Arbitrum also released Bounded Liquidity Delay (BoLD) last week. BoLD introduces truly permissionless validation for Ethereum layer-2 without sacrificing the speed of dispute resolution.
In a post on X, Arbitrum said BoLD was thoroughly tested and found secure. It is resilient against attacks, allowing a single Arbitrum validator to defend against multiple malicious actors.
From a security perspective:
BoLD is designed to confiscate the bonds from failed attackers, while honest validators get reimbursed.
This creates a strong economic incentive against malicious behavior while protecting honest participants.
— Arbitrum Developers (@ArbitrumDevs) February 12, 2025
Additionally, Arbitrum claimed BoLD is designed to allow parallel challenge resolution, meaning withdrawal delays are capped at a maximum of 12.8 days even when there are disputes.
While these developments are bullish, ARB has been in free fall. The token risks plunging below $0.40, printing multi-month lows, and extending losses from 2024.
(ARBUSDT)
Bulls must step in with prices diving lower on February 18 and prop up prices. The local resistance remains at $0.52, a level that buyers must break to drive the token higher.
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Arbitrum DAO Votes To Diversify With RWAs
- Arbitrum DAO votes to buy more tokenized RWAs
- Arbitrum benefits from STEP 1 investments
- ARB dropping, will bulls step in?
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