USDY, a tokenized note that is secured by short-term US Treasuries and bank demand deposits, has been selected as one of the real-world assets (RWA) products to receive allocations from Arbitrum. The Arbitrum (ARB) STEP Committee has recommended the diversification of 6 million ARB coins (valued at $4.5 million) from its treasury into Ondo Finance’s USDY.
The notable validation from Arbitrum represents major support for the expansion and adoption of Ondo Finance, a leading project in the realm of cryptocurrency and decentralized finance.
USDY Receives 17% of Total Allocated Funds
Ondo Finance shared the exciting news earlier today on X (formerly Twitter). According to the announcement, USDY was among one of the six products that were ultimately selected from a pool of 30 applications. Consequently, USDY received 17% of the total allocated funds of 35 million ARB (worth $26.3 million).
Following the satisfaction of the presented criteria, Ondo Finance’s USDY will be allocated 6 million ARB or $4.5 million, placing it in second place to Black Rock’s BUILD as the project with the most funding. Notably, BUILD received 11 million ARB coins or $8.25 million.
We are thrilled to share that the @arbitrum STEP Committee has recommended a diversification of 6M $ARB from the Arbitrum DAO Treasury into Ondo $USDY.Out of 30+ applications, the Committee is recommending six products, with over 17% of the funds set to be allocated to…
— Ondo Finance (@OndoFinance) June 23, 2024
In the selection process, the committee concentrated on products managing more than $100 million in existing assets under management (AUM) to avoid distributing the allocation ‘too thinly’. Hence, only six products were selected from a previously shortlisted list of 17 products.
“To not spread the amount too thinly and increase operational or default risk causing loss of principle, we selected only 6 products from the shortlist of 17 shared earlier. Specific amounts to each provider were mostly based on existing AUM (the three tiers were below 100 million, above 100 million, and the topmost,” the committee said.
Ondo Finance expressed its excitement about the new development stating that it is proud that the USDY’s high-quality nature has been recognized. The RWA product extended its appreciation to the Arbitrum (ARB) STEP Committee for undergoing a stringent diligence process.
“We are proud that the high-quality nature of USDY has been recognized and appreciate the committee’s thorough diligence process. We look forward to the Arbitrum community vote, and stand ready to further extend collaboration efforts,” the team said.
Other selected products by the Arbitrum committee include Backened Finance’s Bib01, OpenEden’s TBILL, Superstate’s USTB, and Mountain USDM. Ultimately, the diversification of funds by Arbitrum to these projects underscores its commitment to improving growth in the RWA tokenization space.
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