Arbitrum Aims to Attract Institutional Capital with RWA Projects

• Arbitrum's ARB token has faced a steep decline, falling over 70% in 2025 and another 40% in 2026.
• On-chain data indicates a strategic shift in focus toward the Real-World Assets (RWA) sector, aiming to attract institutional investors.
• Arbitrum's partnership with ETHZilla, which launched Eurus Aero Token I, provides investors with tokenized access to income from jet engine leases.

Arbitrum's ARB token has experienced a significant 40% drop in 2026, with all HODLers underwater. This decline is amplified by broader market fear, as reflected in the record-low Fear & Greed Index.

Despite the price drop, on-chain liquidity remains depressed, but there are signs of strategic capital inflows, such as a $65 million rise in stablecoin market cap, primarily driven by USDC. Arbitrum is also focusing on RWA projects like tokenized jet engine funds, which could attract institutional interest.

The Eurus Aero Token I, launched on the Arbitrum network, allows investors to gain exposure to revenue generated by two commercial jet engines leased to a U.S.-based airline. These engines, valued at $12.2 million, are leased under long-term agreements, and the token structure enables fractional access to aviation leasing income.

Each token is priced at $100, with a minimum investment of $1,000 (10 tokens), and the projected annual yield is approximately 11%. Income distributions are expected to be processed on-chain, leveraging Arbitrum's lower transaction fees and faster processing compared to Ethereum's mainnet.

What is the significance of the Eurus Aero Token I?

The Eurus Aero Token I is a tokenized real-world asset instrument backed by two CFM56 commercial jet engines acquired for $12.2 million. These engines are leased to a leading U.S. air carrier, generating monthly cash flows through base rent and utilization-based payments.

The tokens are offered exclusively through the Liquidity.io ecosystem and are designed for accredited investors. The lease agreements include a $3 million put/call option, allowing ETHZilla Aerospace to sell or be required to sell the engines upon lease completion.

The Eurus Aero Token I is structured to provide a target return of approximately 11% for investors who hold the tokens for the full lease term. The lease extends into 2028, and the cash flow is transparently and efficiently managed via Ethereum Layer 2 protocols.

What are the broader implications for Arbitrum's RWA strategy?

The total value of onchain real-world assets has increased 13.5% over the past 30 days, despite the broader crypto market losing $1 trillion in value. Ethereum recorded the highest growth in tokenized asset value, with an increase of $1.7 billion, followed by Arbitrum and Solana.

Arbitrum has become one of the most active Layer-2 networks in crypto, with $670 million in new real-world asset tokenization reported last week. Stablecoin liquidity on Arbitrum has also increased to $8 billion, the highest among Layer-2 platforms.

Despite this, the ARB token has remained down nearly 90% from its peak. The discussion centers on the lack of mechanisms that reward token holders, such as staking rewards or token burns. While the network is thriving and attracting major integrations like Robinhood's European stock purchases, the token's economic model does not directly benefit holders from the network's growth.

What are the market conditions and future outlook for Arbitrum?

Arbitrum's ARB token is down 40% in 2026, hitting a price near $0.11, with the RSI in oversold territory. Despite these conditions, there are signs of institutional adoption, including expanded services from Robinhood and WisdomTree.

The network has also seen a $65 million weekly increase in stablecoin liquidity. However, technical indicators suggest that most investors are still underwater, and future token unlocks could add selling pressure. A potential bounce toward $0.13 is being watched, with medium-term targets as high as $0.25.

Major financial institutions are actively building infrastructure to handle tokenized assets, aiming to unlock liquidity and streamline settlement processes traditionally constrained by legacy systems.

BlackRock is integrating its BUIDL token onto decentralized exchanges to enable faster trading of Treasury bills. Ondo Finance is enhancing the utility of tokenized stocks and ETFs by allowing them to be used as collateral in lending markets.

On the retail side, Robinhood and Arbitrum are testing stock tokens on Layer 2 networks to lower costs and improve accessibility. These initiatives indicate a shift from speculative retail adoption to institutional-grade capital efficiency, driven by the desire to leverage blockchain's programmability and instant settlement capabilities.