{"id":"ondo-us-dollar-yield-usdy","hidden":false,"ipfs":"QmQaEgtb86wSZNqfGg2hXkb5A5zbKr9GeMHttjiocdyWer","language":"en","transactionHash":"0xa85bd023ba60e8ed42e91d3ba53e09651fb6bcebc894f3ba303a8585d4637384","created":"2024-09-02T05:18:05.590Z","updated":"2025-07-28T16:43:01.833Z","title":"Ondo US Dollar Yield (USDY)","summary":"Ondo US Dollar Yield (USDY) is a permissionless, yield-bearing tokenized note backed by short-term U.S. Treasuries, Treasury ETFs, and bank deposits, offering stablecoin-like utility with U.S. dollar‑denominated yield to qualifying non‑US investors.","content":"**Ondo US Dollar Yield (USDY)** is a [permissionless](https://iq.wiki/wiki/permissionless-blockchain), yield-bearing tokenized note backed primarily by short-term US Treasuries, Treasury ETFs, and bank deposits, issued to qualifying non‑US individual and institutional investors.[\\[3\\]](#cite-id-dfmbski2y2d) It is designed to combine stablecoin-like utility with US dollar‑denominated yield, where returns accrue through an increasing redemption value rather than explicit interest payments, and is structured with bankruptcy‑remote protections and security interests over [collateral](https://iq.wiki/wiki/collateral) for tokenholders.[\\[10\\]](#cite-id-762pa0pbch)​\n\n## Overview\n\nUSDY is a yield-bearing tokenized note that offers [stablecoin](https://iq.wiki/wiki/stablecoin)-like usability while being backed by short-term US Treasuries, certain Treasury ETFs, and bank demand deposits.[\\[3\\]](#cite-id-dfmbski2y2d) Yield from these underlying assets accrues to holders through an increasing reference redemption price, rather than periodic on-chain interest distributions.[\\[3\\]](#cite-id-dfmbski2y2d) [Ondo Finance](https://iq.wiki/wiki/ondo-finance) positions USDY as a “yieldcoin” alternative to traditional dollar [stablecoins](https://iq.wiki/wiki/stablecoin), intended for buy‑and‑hold savings, treasury management, and other onchain use cases.[\\[10\\]](#cite-id-762pa0pbch)​\n\nUSDY is available on multiple [blockchains](https://iq.wiki/wiki/blockchain), including [Ethereum](https://iq.wiki/wiki/ethereum), [Solana](https://iq.wiki/wiki/solana), [Aptos](https://iq.wiki/wiki/aptos), [Sui](https://iq.wiki/wiki/sui), [Mantle](https://iq.wiki/wiki/mantle-network), [Mantra](https://iq.wiki/wiki/mantra-dao), and [Cosmos](https://iq.wiki/wiki/cosmos) via [Noble](https://iq.wiki/wiki/noble), with additional deployments on networks such as [Arbitrum](https://iq.wiki/wiki/arbitrum) expanding its reach across decentralized finance ecosystems.[\\[10\\]](#cite-id-762pa0pbch)​[\\[11\\]](#cite-id-z9fg8owkif)​\n\n## History\n\n​[Ondo Finance](https://iq.wiki/wiki/ondo-finance) launched USDY in August 2023 as a permissionless, yield-bearing tokenized note secured by US Treasuries, aiming to combine the accessibility of [stablecoins](https://iq.wiki/wiki/stablecoin) with institutional‑style investor protections.[\\[10\\]](#cite-id-762pa0pbch) Over its first year, USDY expanded across multiple [blockchains](https://iq.wiki/wiki/blockchain) and integrated with a growing number of decentralized finance protocols, contributing to a rapid increase in assets under management.[\\[10\\]](#cite-id-762pa0pbch)​\n\nBy August 2024, Ondo Finance reported that USDY had surpassed $350 million in [total value locked (TVL)](https://iq.wiki/wiki/tvl), had been integrated by more than 70 projects, and was natively supported on 7 blockchains, including [Ethereum](https://iq.wiki/wiki/ethereum), [Solana](https://iq.wiki/wiki/solana), [Aptos](https://iq.wiki/wiki/aptos), [Sui](https://iq.wiki/wiki/sui), [Mantle](https://iq.wiki/wiki/mantle-network), [Mantra](https://iq.wiki/wiki/mantra-dao), and [Cosmos](https://iq.wiki/wiki/cosmos) via [Noble](https://iq.wiki/wiki/noble).[\\[10\\]](#cite-id-762pa0pbch) These milestones marked USDY’s transition from an initial launch product to a widely used yieldcoin within the broader real‑world asset and DeFi ecosystem.\n\n## Design and Mechanism\n\nUSDY is structured as a tokenized note for qualifying non‑US individual and institutional investors, issued under a Regulation S framework and backed by a portfolio composed of short-term US Treasuries, shares of a short‑duration Treasury ETF, and bank demand deposits.[\\[3\\]](#cite-id-dfmbski2y2d) The product is intended to provide access to US dollar‑denominated yield while maintaining features associated with [stablecoins](https://iq.wiki/wiki/stablecoin), such as onchain transferability and composability with decentralized finance protocols.[\\[3\\]](#cite-id-dfmbski2y2d)​\n\nYield on USDY accrues at a variable rate that is set periodically by the issuer based on the income from the underlying assets and reflected in an increasing token reference price rather than through discrete interest payments.[\\[3\\]](#cite-id-dfmbski2y2d) As the reference price rises, holders who redeem their tokens receive more US dollars or stablecoins per unit of USDY than they initially invested, embedding the yield into the token’s redemption value.[\\[3\\]](#cite-id-dfmbski2y2d)​\n\nUSDY is offered in two forms: an “accumulating” version (USDY) and a “rebasing” version (rUSDY).[\\[3\\]](#cite-id-dfmbski2y2d) For accumulating USDY, the per-token reference price increases as yield accrues. In contrast, rUSDY is designed to maintain a reference value of approximately $1.00 per token by increasing the number of rUSDY units in a holder’s wallet as the USDY reference price rises, so that yield is realized as additional tokens via periodic rebases.[\\[3\\]](#cite-id-dfmbski2y2d)​\n\nTo support multi-chain usage while preserving a unified [collateral](https://iq.wiki/wiki/collateral) pool, [Ondo Finance](https://iq.wiki/wiki/ondo-finance) uses [LayerZero](https://iq.wiki/wiki/layerzero)’s Omnichain Fungible Token (OFT) standard so that USDY can be transferred between networks such as [Ethereum](https://iq.wiki/wiki/ethereum), [Arbitrum](https://iq.wiki/wiki/arbitrum), and Mantle without fragmenting the underlying assets.[\\[12\\]](#cite-id-lm3u1l4zsq) Under this model, USDY remains economically a single asset even as wrapped representations move across chains for use in different decentralized applications.[\\[13\\]](#cite-id-3ntulcydfx)​\n\nOn-chain transfers of USDY between user addresses are permissionless, enabling peer‑to‑peer payments and DeFi integrations.[\\[10\\]](#cite-id-762pa0pbch) However, primary issuance and redemption of USDY require users to complete onboarding with know‑your‑customer (KYC), anti‑money laundering (AML), and related compliance checks, and are limited to eligible non‑US persons in supported jurisdictions.[\\[3\\]](#cite-id-dfmbski2y2d)​\n\n## Tokenomics and Distribution\n\nUSDY is designed to track a steadily increasing reference value rather than a strict $1.00 soft peg. Its value is linked to the US dollar through exposure to US dollar‑denominated assets, but the target is to pass through the net yield from short-term US Treasuries, Treasury ETFs, and bank deposits as a rising redemption price over time instead of maintaining a constant unit value.[\\[3\\]](#cite-id-dfmbski2y2d) This design differentiates USDY from traditional [stablecoins](https://iq.wiki/wiki/stablecoin) that focus on preserving a near‑fixed nominal price.\n\nIssuance and redemption occur through Ondo’s platform and supported networks after eligible non‑US investors have completed onboarding.[\\[3\\]](#cite-id-dfmbski2y2d) Users can typically mint USDY by depositing [USDC](https://iq.wiki/wiki/usdc), with larger deposits also supported via USD bank wires, and begin accruing yield once transactions settle.[\\[3\\]](#cite-id-dfmbski2y2d) Redemptions can be processed either in fiat to non‑US bank accounts or in USDC through Ondo entities, with certain networks such as [Sui](https://iq.wiki/wiki/sui), [Aptos](https://iq.wiki/wiki/aptos), and [Noble](https://iq.wiki/wiki/noble) subject to minimum mint and redeem sizes, including a $5,000 minimum for some chains.[\\[3\\]](#cite-id-dfmbski2y2d)​\n\nThe accumulating USDY token and the rebasing rUSDY token provide different user experiences while drawing on the same underlying [collateral](https://iq.wiki/wiki/collateral). Accumulating USDY is generally suited to buy‑and‑hold or treasury‑management use cases where an increasing reference price is acceptable, while rUSDY maintains a $1.00 unit value by increasing token balances through rebases as the USDY reference price rises, which can be more convenient for payment, accounting, or settlement workflows that expect a stable nominal unit.[\\[3\\]](#cite-id-dfmbski2y2d)​\n\n## Partnerships\n\nUSDY has been integrated into multiple [blockchain](https://iq.wiki/wiki/blockchain) ecosystems and protocols. In 2024, [Ondo Finance](https://iq.wiki/wiki/ondo-finance) deployed USDY on [Arbitrum](https://iq.wiki/wiki/arbitrum), enabling users of the [Ethereum](https://iq.wiki/wiki/ethereum) [Layer 2](https://iq.wiki/wiki/layer-2) network to access a yield-bearing tokenized note backed by US Treasuries and related assets.[\\[11\\]](#cite-id-z9fg8owkif) As part of Arbitrum’s STEP treasury diversification program, the Arbitrum DAO approved an allocation of ARB tokens into USDY, incorporating the asset into the DAO’s onchain treasury management.[\\[10\\]](#cite-id-762pa0pbch)​\n\n[YOUTUBE@VID](0fB5eLbFw3k)\n\nWithin the Arbitrum ecosystem, USDY has been listed and used on decentralized finance platforms such as the Camelot decentralized exchange and the Dolomite money market, supporting trading, lending, and [collateral](https://iq.wiki/wiki/collateral) use cases tied to a yield-bearing dollar asset.[\\[11\\]](#cite-id-z9fg8owkif) Price data for USDY on Arbitrum [leverages](https://iq.wiki/wiki/leverage) [Pyth Network](https://iq.wiki/wiki/pyth-network) oracles, which provide feeds based on both primary market mint and redeem prices and secondary market trading activity.[\\[7\\]](#cite-id-3e69i3qlh1m)​\n\nOndo collaborates with [LayerZero](https://iq.wiki/wiki/layerzero) to enable omnichain transfers of USDY using the Omnichain Fungible Token (OFT) standard, allowing USDY to move between networks such as Ethereum, Mantle, and Arbitrum while referencing a single pool of collateral.[\\[12\\]](#cite-id-lm3u1l4zsq) This integration is intended to support broader multi-chain adoption of USDY across DeFi protocols.[\\[13\\]](#cite-id-3ntulcydfx)​\n\nInstitutional partnerships include the integration of USDY into [BitGo](https://iq.wiki/wiki/bitgo)’s Go Network, a real‑time settlement platform used by more than 1,500 institutions and enterprises. This integration allows institutional participants to hold USDY in BitGo custody and settle transactions using a yield-bearing asset as collateral within the network.[\\[14\\]](#cite-id-ix3te9atzq)​","recentActivity":null,"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"categories":[{"id":"cryptoassets","title":"Cryptoassets"}],"tags":[],"images":[{"id":"QmPHaLjbDi3oDTWLHaF4RBqzDwAqZg85BXCunmDWkomsqG","type":"image/jpeg, image/png"}],"media":[{"name":"USDY-token.png","id":"QmSgAAyZRsWFSypPXhNFX18Fwmjckxu6BQaxpE2iX646B4","size":"0.03","type":"GALLERY","source":"IPFS_IMG"},{"name":"upload_2y10hFSYnsolLvTms0yVNN3cmeGCiZdY71Y98h9y3CDysy1q2g4PMAoG.png","id":"QmXDC2qCmM4KriFyjeP9jMAzGPHipYF46gv1qGk3yCVZyY","size":"0.02","type":"GALLERY","source":"IPFS_IMG"},{"name":"TApw5L319lM","id":"https://www.youtube.com/watch?v=TApw5L319lM","size":"0","type":null,"source":"YOUTUBE"},{"name":"0fB5eLbFw3k","id":"https://www.youtube.com/watch?v=0fB5eLbFw3k","size":"0","type":null,"source":"YOUTUBE"}],"linkedWikis":{"founders":["nathan-allman"],"blockchains":["ethereum","arbitrum","solana","sui","mantle-network","aptos","mantra-dao","sei"],"speakers":[]},"events":[{"id":"c44973f1-b632-418d-83f8-981f96371aab","type":null,"date":"2023-08-01","multiDateStart":null,"multiDateEnd":null,"country":null,"continent":null,"title":"Founded Date","description":"Ondo US Dollar Yield (USDY) was founded","link":null}],"founderWikis":[{"id":"nathan-allman","title":"Nathan Allman"}],"blockchainWikis":[{"id":"ethereum","title":"Ethereum"},{"id":"arbitrum","title":"Arbitrum"},{"id":"solana","title":"Solana"},{"id":"sui","title":"Sui"},{"id":"mantle-network","title":"Mantle Network"},{"id":"aptos","title":"Aptos"},{"id":"mantra-dao","title":"Mantra"},{"id":"sei","title":"Sei"}],"metadata":[{"id":"website","value":"https://ondo.finance/"},{"id":"contract_url","value":"https://etherscan.io/token/0x96f6ef951840721adbf46ac996b59e0235cb985c"},{"id":"twitter_profile","value":"https://twitter.com/ondofinance"},{"id":"discord_profile","value":"https://discord.com/invite/YzhZaFbB92"},{"id":"github_profile","value":"https://github.com/ondoprotocol/tokenized-funds"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/ondo-us-dollar-yield/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/ondo-us-dollar-yield"},{"id":"solscan","value":"https://solscan.io/token/a1klobrkbde8ty9qtnqutq3c2ortoc3u7twggz7seto6"},{"id":"etherscan","value":"https://etherscan.io/token/0x96f6ef951840721adbf46ac996b59e0235cb985c"},{"id":"arbiscan","value":"https://arbiscan.io/token/0x35e050d3c0ec2d29d269a8ecea763a183bdf9a9d"},{"id":"blocks-changed","value":"tags, summary"},{"id":"wiki-score","value":"90"},{"id":"references","value":"[{\"id\":\"dfmbski2y2d\",\"url\":\"https://docs.ondo.finance/general-access-products/usdy/basics\",\"description\":\"USDY Basics\\n\",\"timestamp\":1725253451794},{\"id\":\"3e69i3qlh1m\",\"url\":\"https://cointelegraph.com/news/ondo-usdy-yieldcoin-expands-arbitrum\",\"description\":\"Ondo’s USDY yield coin expands to Arbitrum\\n\",\"timestamp\":1725254876701},{\"id\":\"762pa0pbch\",\"url\":\"https://ondo.finance/blog/celebrating-one-year-of-usdy\",\"description\":\"Celebrating One Year of USDY\",\"timestamp\":1789789063391},{\"id\":\"z9fg8owkif\",\"url\":\"https://ondo.finance/blog/usdy-goes-live-on-arbitrum\",\"description\":\"USDY Goes Live on Arbitrum: Bringing RWAs to DeFi\",\"timestamp\":1789789063391},{\"id\":\"lm3u1l4zsq\",\"url\":\"https://layerzero.network/blog/ondo-finance-goes-omnichain-with-layerzero\",\"description\":\"Ondo Finance Goes Omnichain with LayerZero\",\"timestamp\":1789789063391},{\"id\":\"3ntulcydfx\",\"url\":\"https://crypto.news/ondo-integrates-layerzero-for-multi-chain-usdy-support/\",\"description\":\"Ondo integrates LayerZero for multi-chain USDY support\",\"timestamp\":1789789063391},{\"id\":\"ix3te9atzq\",\"url\":\"https://ondo.finance/blog/usdy-goes-live-on-bitgos-go-network-bringing-yield-to-institutional-balances\",\"description\":\"USDY Goes Live on BitGo's Go Network: Bringing Yield to Institutional Balances\",\"timestamp\":1789789063391},{\"id\":\"3608ydmunz\",\"url\":\"https://ondo.finance/blog/2024-rewind-the-year-rwas-came-alive\",\"description\":\"2024 Rewind: The Year RWAs Came Alive\",\"timestamp\":1789789063391},{\"id\":\"w6n9imhzm6\",\"url\":\"https://ondo.finance/blog/usdy-is-coming-to-the-sei-network\",\"description\":\"USDY is Coming to the Sei Network\",\"timestamp\":1789789063391}]"},{"id":"previous_cid","value":"QmQaEgtb86wSZNqfGg2hXkb5A5zbKr9GeMHttjiocdyWer"},{"id":"commit-message","value":"Update USDY wiki: revise summary, trim 154 words, update tags"},{"id":"previous_cid","value":"QmQaEgtb86wSZNqfGg2hXkb5A5zbKr9GeMHttjiocdyWer"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"views":765}