Ondo US Dollar Yield(USDY)

Overview

Ondo US Dollar Yield (USDY) is a token issued by Ondo Finance that is backed by short-term US Treasury securities and bank demand deposits. It is offered to non-US individual and institutional investors outside the United States, and interest generated by the backing assets accrues to token holders. Unlike a conventional stablecoin, it is not pegged to one dollar but is structured as an accumulating token whose value rises with accrued yield.

USDY launched in 2023 and is available on several blockchains including Ethereum, Solana, Aptos, Sui and Cosmos, alongside a rebasing variant called rUSDY that keeps its balance denominated at one dollar. The collateral is held by third-party custodians, holdings reports are published periodically, and newly issued tokens are subject to a transfer restriction period. It is commonly grouped with real-world asset (RWA) tokenization products, and its regulatory treatment and availability vary by jurisdiction.