What is Ondo US Dollar Yield (USDY)?
Ondo US Dollar Yield (USDY) is a tokenized note backed by short-term US Treasuries and bank deposits that passes interest to holders. USDY was launched in August 2023 by Ondo Finance, a company focused on tokenizing real-world assets.
USDY is designed mainly for non-US individuals and institutions. Because USDY follows the Regulation S framework under US securities law, US persons generally cannot purchase or hold it.
How does USDY earn yield?
USDY holders receive the interest earned by the underlying assets through the token's value. Standard USDY is accumulating, meaning its price gradually rises over time, while a variant called rUSDY rebases, keeping the price near one dollar while the holder's balance grows.
The USDY yield reflects the portfolio's interest minus a management fee, so it changes with US interest rates. Newly issued USDY has historically been subject to a regulatory holding period, but according to August 2026 reports (Yahoo Finance) on its BNB Chain launch, Ondo introduced instant minting and redemption on that chain for the first time.
What is the supply of USDY and which chains support it?
USDY has no fixed maximum supply; tokens are minted when investors deposit funds and burned when they redeem. The USDY market cap was about 2.1 billion dollars as of August 2026 per reports carried by Yahoo Finance, and circulating supply expands or contracts with demand and the size of the backing assets.
USDY started on Ethereum and is deployed on networks including Solana, Sui, Aptos, Mantle and Noble on Cosmos, and it launched on BNB Chain in August 2026. Ondo is also building Ondo Chain, an institution-focused layer 1, and the tokenized stock platform Ondo Global Markets, where USDY can serve as a settlement and collateral asset.
What are the strengths and risks of USDY?
USDY offers on-chain access to Treasury-based yield and can be used across several chains and DeFi applications. USDY collateral is reportedly held by a bankruptcy-remote entity and subject to regular verification.
USDY carries restrictions such as exclusion of US persons, holding periods and KYC requirements. USDY users also face yield changes as interest rates move, issuer and custodian operational risk, smart contract and bridge risk, and possible regulatory changes.
