Ondo's USDY, a USD yield token, enters the Cosmos blockchain

The decentralized investment platform Ondo Finance has partnered with Noble Blockchain to issue Ondo USD Yield (USDY) tokens on its blockchain. USDY will be integrated into over ninety specific applications within the Cosmos ecosystem, allowing for various financial applications such as trading, lending, borrowing, and using it as collateral.

What is USDY?

USDY is a tokenized note collateralized by short-term US Treasury bonds and bank demand deposits. It is a tokenized product launched by the decentralized investment platform Ondo Finance in August last year. USDY is available for non-US individuals and institutional investors, with a minimum purchase amount of only $500, and can be transferred on-chain 40-50 days after purchase.

Its partners include Morgan Stanley, StoneX, responsible for holding short-term US Treasury bonds, while First Citizens and Coinbase Prime also provide collateral in the form of bank deposits and cash equivalents, accounting for less than 0.01%.

USDY currently has a TVL of $340 million and an annualized return rate of 5.3%.

Ondo's RWA skyrocketed 14 times, is the profitable USDY better than stablecoins?

USDY Expands to Cosmos Blockchain

Ondo Finance has partnered with Noble Blockchain to issue USDY on its chain. Noble is a Cosmos application-specific blockchain known for providing native asset issuance for the Cosmos ecosystem, serving as the native asset issuance network for Circle's USDC stablecoin in the Cosmos ecosystem. Since its initial launch in September 2023, the locally issued USDC value on Noble exceeds $243 million.

Injective, Osmosis, Kujira, and Pyth will also adopt USDY. In particular, Helix, a derivative exchange on Injective, will introduce USDY as collateral for spot assets and perpetual markets, allowing users to trade on-chain for the first time through USDY and earn profits. Another protocol on Injective, Hydro, will also incorporate USDY into its structured assets, enabling users to gain on-chain returns.