Tokenized product protocol Ondo Finance yesterday announced the introduction of its U.S. dollar yield token (USDY) to the Ethereum L2 network Arbitrum as it continues to drive the utility, scalability and composability of real-world assets (RWA).
(Ondo USD Yield Token USDY Enters Cosmos Blockchain)
What is Ondo's USDY?
As a tokenized bill product launched by the decentralized investment platform Ondo Finance last year, USDY is a U.S. dollar income token guaranteed by short-term U.S. Treasury bonds and bank demand deposits, aiming to allow investors to enjoy attractive returns similar to traditional finance. , and institutional-level investor protection measures.
It is reported that USDY is only available for purchase by non-U.S. individual and institutional investors, and claims to be regulated by the Reg S regulations of the U.S. Securities and Exchange Commission (SEC).
(In-depth understanding: ONDO jumped 14 times on the RWA train. Is the profitable USDY better than the stable currency?)
USDY currently has a total value locked (TVL) of $382 million, supports eight blockchain networks, and has an annualized return (APY) of 5.35%.
Ondo USDY expands to Arbitrum
Ondo’s blog post shows that USDY is now online on the Arbitrum network:
This integration brings our tokenized U.S. Treasury bond products into one of the largest DeFi ecosystems, continuing Ondo’s push to extend the utility and accessibility of real-world assets to the blockchain.
Currently, USDY is now available on Arbitrum’s major DeFi protocols, including DEX Camelot and lending protocol Dolomite; users can trade and provide USDY liquidity in the former, or deposit USDY in the latter, and both can enjoy USDY and the protocol at the same time Double the profit within.
Ondo: Paving the way for DeFi combined with RWA
Katie Wheeler, Vice President of Partnerships at Ondo Finance, expressed her expectations for this, saying that USDY will unlock new income channels for Arbitrum ecological users:
The Arbitrum ecosystem has shown tremendous potential for growth, and it was a no-brainer given USDY’s composability and growing trend in DeFi.
Now, the two parties seem to be working together. Arbitrum DAO's STEP committee decided to invest $6 million worth of ARB tokens from its vault to Ondo's USDY two months ago; as part of its diversified investment strategy, the Investments account for 17% of total strategic funds, second only to BlackRock's BUIDL fund.
On the other hand, Arbitrum is also actively pursuing RWA business, and Franklin Templeton just announced last week that it would integrate its FOBXX funds into the network.
RWA Market Trends
According to data from the tokenized asset analysis platform RWA.xyz, the main products and market values of the current tokenized investment market are:
BlackRock’s “USD Institutional Digital Liquidity Fund (BUIDL)”: $509 million
Franklin Templeton’s “OnChain U.S. Government Currency Fund (FOBXX)”: $428 million
Ondo’s “US Treasury and Deposit Tokenized Notes (USDY)”: $330 million
(RWA smells so good! Coinbase Asset Management plans to launch a tokenized market fund)
As traditional finance continues to hop on the RWA train, Standard Chartered Bank predicts that the market size will reach US$30 trillion in 2034, compared with only about US$11.7 billion currently.
This article Ondo USD Yield Token USDY Listed on Arbitrum: Introducing RWA to DeFi first appeared on Chain News ABMedia.
