The asset management giant BlackRock has revealed further involvement in the crypto space. The global firm has teamed up with Securitize Markets to apply for Arbitrum's Stable Treasury Endowment Program (STEP) to foster institutional investments in crypto.

A Closer Look at the STEP Program Arbitrum's STEP aims to diversify 35 million ARB tokens into stable, real-world assets. This initiative seeks assets that ensure minimal volatility, offer liquid conversion, and yield uncorrelated to the crypto markets. The move by BlackRock and Securitize to apply for this program underscores the increasing interest of traditional financial entities in tokenizing real-world assets.

BlackRock and Securitize's Strategic Move Through their application, BlackRock and Securitize propose a minimum transaction size of $5 million for the first potential investment from Arbitrum's treasury. This collaboration demonstrates BlackRock's commitment to exploring the crypto space. It highlights the growing value of tokenized treasury product tokens, which has seen a nearly 80% increase since the start of the year.

"We submitted a proposal to be part of the @Arbitrum DAO as the placement agent for Blackrock's BUIDL, and we hope to get the support of the @Arbitrum community to bring a large TradFi institution into their treasury," wrote Securitize Founder Carlos Domingo on X.

The Implications of a Successful Application Should Arbitrum's governance approve the application, BlackRock Financial Management will oversee the fund's investment activities, with Securitize managing the distribution and token creation on the blockchain.

News sources revealed that the Bank of New York Mellon will act as the fund's administrator and custodian. Securitize and BlackRock's application is among over 25 submissions from several financial sectors, including crypto.