$150M Money Market Funds Integrated into Arbitrum RWA

by | Jan 29, 2025 | Adoption News, Latest News | 0 comments

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French fintech firm Spiko has officially brought its money market funds to Arbitrum One, offering institutional-grade investment opportunities on the layer-2 blockchain. In a Jan. 28 announcement, Spiko shared that its tokenized US and EU T-Bill Money Market Funds are now live on Arbitrum One. These funds operate under the European Commission’s UCITS framework, ensuring a regulated and structured approach to mutual fund sales.

Spiko’s US T-Bills Money Market Fund has seen an 8% growth in the past month, pushing its net assets beyond $50 million, according to RWA.xyz. The fund currently provides an annual percentage yield (APY) of 4.37%. Meanwhile, its EU T-Bills Money Market Fund now holds $95.1 million in assets, reflecting a 10.9% increase over the same period. The market for tokenized US Treasury assets is growing at a rapid pace. On Jan. 28, Ondo Finance announced that it had launched its Short-Term US Government Treasuries (OUSG) on the XRP Ledger. At present, the total value of tokenized Treasury assets stands at approximately $3.43 billion, according to RWA.xyz data.

RWA Tokenization Could Thrive Under Trump Administration

Attorney Eli Cohen, from the tokenization platform Centrifuge, believes that President Donald Trump’s pro-crypto stance could also boost real-world asset tokenization (RWA). In a conversation with us, Cohen suggested that the new administration might take a firm stand against anti-crypto policies, potentially encouraging more participation in the RWA market.

“This will open up banking and brokerage channels, making it easier to create and expand tokenized products,” Cohen explained. While fintech startups and blockchain companies are currently leading the RWA tokenization surge, traditional financial institutions are expected to drive mainstream adoption, according to Jesse Knutson, head of operations at Bitfinex Securities.

“In the early stages, we’ll see more agile institutions like family offices taking the lead,” Knutson noted during the Plan B Lugano conference in November. “But in the long run, the benefits of tokenization will attract major institutional investors.”

Conclusion

The addition of Spiko’s money market funds to Arbitrum One marks another step forward in the growing tokenization of real-world assets. With increasing participation from fintech companies and the potential for favorable policies under the Trump administration, the RWA ecosystem is poised for significant expansion. Traditional financial institutions are expected to play a crucial role in driving mass adoption as the market matures.

FAQs

 What is Spiko’s contribution to Arbitrum’s RWA ecosystem?
Spiko has deployed its tokenized US and EU T-Bill Money Market Funds on Arbitrum One, providing institutional-grade investment assets to the layer-2 blockchain.

 How much are Spiko’s money market funds worth?
Spiko’s US T-Bills Money Market Fund holds over $50 million, while its EU T-Bills Money Market Fund has approximately $95.1 million in assets.

How does the Trump administration impact RWA tokenization?
Legal experts believe that Trump’s pro-crypto stance could lead to a reversal of anti-crypto policies, encouraging greater participation in the RWA market.

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