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- The DAO approved investing $11.6 million in tokenized US Treasurys, splitting funds among Franklin Templeton, Spiko, and WisdomTree.
- Close to 89% voted for distribution following reading of 50 proposals with plans for risk balance, fees, TVL, and participation.
The Arbitrum Foundation revealed that the DAO moved into the next stage of its Stable Treasury Endowment Program (STEP) after an on-chain vote. This stage is a notable investment of 35 million ARB, which is about $11.6 million, invested into tokenized US Treasurys. The assets are to be managed via leading institutional issuers Franklin Templeton, Spiko, and WisdomTree.
It’s a massive day for RWAs!
The ArbitrumDAO just approved 35M ARB via STEP 2 to accelerate RWA institutional adoption with @FTI_US @Spiko_finance and @WisdomTreeFunds
Only on Arbitrum, here’s what this means 👇 pic.twitter.com/AtnYof4qsH
— Arbitrum (@arbitrum) May 8, 2025
The committee of The DAO declared that they would put 35% into Franklin Templeton’s FOBXX, symbol BENJI; another 35% into Spiko’s USTBL; and the final 30% into WisdomTree’s WTGXX. This choice came after an exhaustive review of over 50 proposals, with the aim of finding an intersection of fees, current total value locked (TVL), risk levels, and community engagement.
Close to 89% voted for this distribution, while just 0.01% voted against and approximately 11% abstained from casting votes. The voting window opened on May 1 and closed at 9 a.m. Eastern Time on Thursday. Those who were not selected in this round are able to reapply in the next round, as set out in the proposal done in favor of the committee by Entropy Advisors.
Franklin Templeton Chosen for STEP 2 Program
Roger Bayston, Head of Digital Assets at Franklin Templeton, expressed enthusiasm about the selection. Bayston said:
We are thrilled to be selected as a manager for the STEP 2 program, deepening our already strong connection with the Arbitrum user base,
Bayston emphasized that with the use of Arbitrum’s Layer 2 technology, they were able to offer quicker, scalable, and affordable services.
This collaboration not only strengthens our commitment to innovation but also positions us at the forefront of the next generation of financial services infrastructure,
The STEP program is an intentional move to increase institutional presence in Arbitrum’s infrastructure. Through the engagement of established players in traditional finance, the DAO makes clear that it is planning to bridge blockchain technology and traditional finance.
Matthew Fiebach, co-founder of Entropy Advisors, referred to the collaboration as a stunning milestone for crypto. He mentioned that the reality that institutions such as BlackRock, Franklin Templeton, Spiko, and Wisdom Tree are publicly engaging with a DAO in a forum is an unbelievable achievement for the entire crypto space.
$650,000 in 6 Months—A Promising Start
The announcement from The DAO also highlighted that the program has already earned more than $650,000 in interest after just half a year. This performance supports the trust in the effort of the treasury diversification and shows real returns from the real-world asset investments.
The partnership of Arbitrum with Franklin Templeton, Spiko, and WisdomTree also carries with it the bonus of aligning with each of these firms with decades of know-how in asset management. Their involvement can further legitimize Arbitrum’s reputation as a reliable platform with the ability to manage institutional-level monetary activity.
The application process balanced risk with the potential to fund the wider use of tokenized assets and kept transparency at the forefront. Although there are applicants who will have to hold over for the following round, the present distribution is an unmistakable reflection of the DAO’s intention to increase its holdings in the treasury via deals with leading crypto and traditional finance players.
