Ondo Finance Unveils Yield-Bearing USDY Stablecoin on Stellar

Ondo Finance has officially launched USDY, a yield-bearing stablecoin that is backed by U.S. Treasuries and bank deposits, on the Stellar network. This release represents a significant milestone as it is the first product of its kind tailored for Stellar users.

Key Takeaways

Launch of USDY: Ondo Finance has introduced USDY, a stablecoin on Stellar that earns yield from U.S. Treasuries and bank deposits.
Access and Benefits: Individuals and small businesses can save and earn yield simultaneously, while institutions can enhance treasury management.
DeFi Integration: USDY can be used in various DeFi applications and as collateral for loans.
Innovation in Stablecoins: Unlike existing fiat-backed stablecoins on Stellar, USDY stands out by generating yield, making it a groundbreaking financial tool.

Stellar

USDY

USDY, which stands for United States Dollar Yield, is now available on the Stellar network, enabling individuals and small businesses to save in a stablecoin that preserves value while generating yield. This innovation allows for liquidity in everyday spending, and institutions can benefit from using USDY for treasury management, acquiring a secure, interest-earning asset that is accessible around the clock. Furthermore, USDY can serve as collateral for borrowing and lending within Stellar’s decentralized finance (DeFi) ecosystem, and it enhances cross-border payments, allowing users to earn yield on idle balances during transfers.

USDY Enhances Stellar's Stablecoin Offering

The introduction of USDY signifies a pioneering achievement for the Stellar network, as it is the first stablecoin that automatically generates yield from U.S. Treasuries and bank deposits. While Stellar supports multiple fiat-backed stablecoins, like USD Coin (USDC) and EURC, these coins maintain a constant value without providing users with any yield potential.

On the other hand, assets like Etherfuse’s Stablebonds on Stellar may offer returns linked to treasuries, but they operate more like bond instruments rather than stablecoins.

“Stablecoins have opened the door to global access to the U.S. dollar. With USDY, we are advancing this concept by integrating U.S. Treasuries into the on-chain world in a way that combines stability, liquidity, and yield,” stated Ian De Bode, Chief Strategy Officer at Ondo Finance.

By bridging the gap between traditional financial assets and the innovative potential of blockchain technology, USDY is set to transform how stablecoins function within the burgeoning DeFi landscape.