Arbitrum STEP Committee Endorses Ondo Finance with $4.5 Million Allocation for USDY Tokenization

Arbitrum STEP Committee Endorses Ondo Finance with $4.5 Million Allocation for USDY Tokenization

Ondo Finance, a notable entity in the realm of real-world asset (RWA) tokenization, has garnered substantial support from the Arbitrum STEP Committee.

The committee has advocated for the diversification of 6 million Arbitrum (ARB) tokens from the Arbitrum DAO Treasury into Ondo Finance’s USDY. With ARB currently priced at $0.75, this allocation equates to approximately $4.5 million.

Arbitrum’s Allocation Amidst a Surge in Tokenized Treasuries

The STEP Committee’s recommendation encompasses six selected products from over thirty applications. The committee aimed to avoid diluting the allocation too much, preferring to focus on products managing over $100 million in existing assets under management (AUM).

USDY met the criteria, securing a significant portion of the funds, accounting for over 17% of the allocation. This positions it second only to BlackRock’s BUIDL, which received 11 million ARB (about $8.25 million).

Ondo Finance expressed gratitude for the committee’s thorough evaluation process and acknowledged the contributions of various committee members and organizations pivotal to this initiative.

“We are proud that the high-quality nature of USDY has been recognized and appreciate the committee’s thorough diligence process. We look forward to the Arbitrum community vote and stand ready to further extend collaboration efforts,” the Ondo Finance team wrote on its X (Twitter) account.

In addition to USDY and BUIDL, other selected applicants include Superstate’s USTB, Mountain USDM, OpenEden’s TBILL, and Backed Finance’s bIB01. USTB received an allocation of 6 million ARB, while the remaining applicants were awarded 4 million ARB (approximately $3 million) each.

This decision aligns with the broader objective of fostering the growth of the real-world asset tokenization ecosystem. The committee also plans to make a 1% treasury diversification via the RWA ecosystem an annual event.

The committee’s recommendation signifies additional recognition for the tokenized treasury segment. BeInCrypto recently reported an unprecedented surge in the value of tokenized US Treasury products, experiencing a more than 1,000% increase since early 2023. This surge led the value to reach $1.64 billion by June 23.

As of now, Ondo’s USDY tokenized value stands at $175.23 million, representing a 10.7% market share.