Arbitrum DAO Approves Diversifying $25M of Its Treasury Into Six Yield-Bearing Products

The Arbitrum community overwhelmingly signaled support to invest 11 million ARB in BlackRock's BUIDL Fund with Securitize

Arbitrum DAO members have approved a proposal to diversify a portion of the decentralized autonomous organization's (DAO) treasury by investing in six stable, liquid, and yield-bearing products.

According to the governance snapshot vote, which ran from July 3 to July 10, the Arbitrum community signaled overwhelming support for the following investments:

- 11 million ARB in BlackRock's BUIDL Fund with Securitize

- 6 million ARB each in Ondo Finance's US Dollar Yield Token and Superstate's USTB Fund

- 4 million ARB each in Mountain Protocol's USDM, OpenEden's TBill Fund, and Backed Finance's bIB01 asset

The vote, which saw 99.44% of ARB token holders voting in favor, also included a decision to allocate a portion of the treasury to Steakhouse Financial for monthly reporting and the creation of a Dune dashboard for real-time updates on the investments.

"We are pleased to see progress towards treasury diversification, an important step for achieving treasury sustainability for the DAO," Blockworks Research wrote in Arbitrum's forum discussions on Tuesday. "The proportional distribution of amounts based on [assets under management] is rational and justified."

"This was one of the easier yes's I have had in the DAO," Ethereum community figure Griff Green wrote in Arbitrum's forum discussions on Tuesday. "I feel a little weird about working with BlackRock and a bunch of ex-Goldman Sachs people, but I think that's just my own anti-TradFi prejudice shining through. In reality, bringing these orgs over to Arbitrum, while also diversifying our treasury is a huge win."

The Arbitrum Foundation and program manager will now begin the process of executing these recommendations following the successful passage of the governance vote.

Meanwhile, Steakhouse Financial, a treasury management firm that supported the proposal, has stated that it will be providing monthly reports and creating a Dune dashboard for real-time reporting on the investments. The firm's monthly reports will reportedly include details on transaction activity during the month, market price, monthly profit/loss, performance comparison to the US Treasury benchmark, and liquidity metrics, among other data points.

"BlackRock's BUIDL crosses $500 million in tokenized treasuries" - Blockworks

"Arbitrum is preparing to fully remove its training wheels in becoming a stage 2 Ethereum rollup" - Blockworks

Addresses identified as belonging to prominent crypto influencer Olimpio.eth, analytics platform L2Beat, and trading firm Wintermute's team dedicated to helping govern crypto protocols had also each voted in favor of the governance vote that ended on Wednesday.

The price of Arbitrum's governance token ARB has declined 6.2% in the last seven days and 25.8% in the past 30 days to trade at 71 cents. This brings its market capitalization to $2.3 billion and its fully diluted valuation to $7.1 billion at the time of writing, according to CoinGecko's data.

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