Arbitrum Soars on SEC Exemption as Tokenized Funds Reach Record High
The Arbitrum token (ARB) has seen a significant rally, increasing by 28% on Friday and reaching near $0.2300. This upward trend is linked to the US Securities and Exchange Commission's decision to grant an 'Innovation Exemption' for crypto platforms to trade tokenized stocks.
As part of this exemption, Tokenized Securities Venues (TSVs) like Arbitrum can engage in 24/7 trading of tokenized assets with instant settlement using permissioned AMM liquidity pools. However, TSVs will require auditable smart contracts on public permissionless ledgers and limits on trading volume.
Arbitrum has emerged as a ready infrastructure for tokenized real-world assets (RWAs), aiming to build a programmable economy. Token Terminal data shows a sharp influx of tokenized funds on Arbitrum, reaching a record high of $979.93 million on Wednesday, driven by credit funds, US and Non-US Treasury bills, and yield strategies.
The technical outlook for Arbitrum remains bullish, with the ARB/USDT daily price chart showing gains totaling over 70% so far this week. The Moving Average Convergence Divergence (MACD) has crossed above its signal line, while the Relative Strength Index (RSI) rises to 78, indicating overbought conditions.