Ondo Finance has announced the launch of USD Yield (USDY), a one-of-a-kind tokenized note secured by US Treasuries and bank deposits, offering a potential starting yield of 5% APY.
In a groundbreaking move, Ondo Finance has introduced USD Yield (USDY), the world's first-ever tokenized note secured by US Treasuries and bank deposits. USDY is a bearer instrument with a comparable level of accessibility to stablecoins while providing holders with a variable yield starting at 5% APY.
The senior secured debt is backed by Ondo USDY LLC, a special purpose vehicle purposefully designed to be bankruptcy-remote from inception. Both individuals and institutions can take advantage of USDY without accreditation requirements, allowing them to mint or redeem their USDY holdings daily via direct onboarding with Ondo.
It is important to note that USDY cannot be offered, sold, or made available within the United States or to US citizens, and it has not been registered under the US Securities Act of 1933. After a waiting period of 40-50 days, USDY tokens can be transferred on-chain to investors who meet the applicable requirements, including non-US persons residing outside of the United States and not subject to other jurisdictional restrictions.