Centrifuge Wants Polkadot To Invest $3 Million In T-Bills

In a proposal, the RWA platform suggests that the newly created Polkadot Community Foundation allocates $3 million USDC to their T-Bill pool.

Real-world asset (RWA) solution Centrifuge has proposed that the newly created Polkadot Community Foundation allocate $3 million USDC to their T-Bill pool, which is held within the Anemoy Liquid Treasury Fund.

The platform argues that this move will benefit the broader ecosystem by boosting the long-term sustainability of the Polkadot Treasury. The T-Bill pool will generate stable yields from RWAs, which will ultimately increase the financial health of the Treasury.

According to Centrifuge, allocating the funds to T-Bill as an investment will also increase the network’s total value locked (TVL) and expand the Treasury’s assets.

The foundation might consider investing in RWAs, as proposed by Centrifuge, to foster the growth of this technology within Polkadot, pushing adoption and growth as a result.

In their proposal, Centrifuge highlights that this move aligns with the foundation’s previous investment in the Anemoy Liquid Treasury Fund. It also presents a unique opportunity for Polkadot to diversify and expand its investment basket, especially now that tokenization and RWA are picking up momentum.

BlackRock, one of the top asset managers in the world, is leading the tokenization of treasury bills. On Ethereum, the asset manager has launched BUIDL, a platform where institutions can invest in tokenized Treasury bills. As of September 10, BUIDL is the largest tokenized Treasuries provider, with over $514 million in assets under management, according to RWA.xyz.

The proposal is garnering community support, with over 53% agreeing to this proposal roughly a week before the decision. However, some community members are expressing concerns.

Most of them point to the potential risks and the negative implications of this on the network’s Treasury. One concern is that if this is approved, it could increase DOT spending requests, eventually leading to a decrease in the foundation’s reserves.

While the prospect of RWA taking off in Polkadot is bullish, DOT is still under pressure. From the daily chart, DOT is down roughly 65% from March highs. It is also in a descending channel and retesting multi-month support.

The primary support lies at around $3.5. On the upper end, resistance is at $5. A break above this line will lift sentiment, leading to a buy trend continuation formation towards $6.5.