Ondo Integrates USDY with Stellar for Yield-Bearing RWAs in Global Payments

• Ondo Finance and the Stellar network have joined forces to expand blockchain access, unlocking new opportunities for real-world asset financing.
• With the partnership, Stellar will showcase its ability to manage large-scale activity efficiently by processing a high volume of transactions.

Ondo Finance, one of the largest issuers of tokenized US Treasury bonds, has revealed plans to launch United States Dollar Yield (USDY) on the Stellar network. This partnership is set to enhance the cross-border payment capabilities of USDY, bringing increased efficiency and security to institutional workflows. According to the announcement made on X, this integration will go live in the coming months, providing the cryptocurrency ecosystem with new avenues for growth.

Ondo will be bringing USDY to the @StellarOrg network, offering yield-bearing RWAs to Stellar’s global ecosystem of treasury management, collateralization, and global payments services, with over 400,000 global cash on and off ramps.

Stellar connects global finance onchain with… pic.twitter.com/1wUB0wBuQG

— Ondo Finance (@OndoFinance) February 6, 2025

For context, USDY is a yield-bearing stablecoin backed by short-term US Treasury bonds and bank demand deposits, offering institutions a stable and secure investment option. With a focus on regulatory compliance and institutional-grade security, Ondo Finance is positioning USDY as a more stable and yield-generating alternative to traditional stablecoins like USDT and USDC.

USDY’s Integration with Stellar

Analyzing the report, CNF found that Stellar was selected for USDY’s deployment due to its strong alignment with Ondo Finance’s objectives of offering secure, compliant, and efficient financial solutions. Stellar’s built-in compliance features ensure that USDY adheres to industry standards for security and regulatory requirements, providing a seamless experience for institutional users.

Additionally, Stellar’s global distribution network, which spans over 180 countries, offers the necessary channels for USDY’s widespread adoption, increasing its accessibility and visibility across the globe.

Deploying USDY on the Stellar network is set to drive new levels of efficiency and productivity by leveraging Stellar’s decentralized payments infrastructure. USDY offers key advantages, including treasury management and collateralization, allowing institutions to earn a yield on idle balances while using it as a secure collateral option for multi-party financial transactions, with 24/7 liquidity ensuring efficient asset management. 

Additionally, USDY’s yield-bearing nature helps optimize capital efficiency in cross-border payments, providing businesses with liquidity and streamlining global payment processes, benefiting both large enterprises and smaller businesses expanding internationally. Also, USDY offers a way to preserve wealth while earning yield tied to the stability of US assets, making it an ideal solution for consumers, small businesses, and creatives looking to meet their financial goals while maintaining liquidity for everyday expenses.

This collaboration follows other significant initiatives, such as the launch of Ondo Global Markets (Ondo GM). As we reported, Ondo GM is a tokenization platform that provides on-chain access to a variety of real-world assets, including stocks, bonds, and ETFs. Ondo has also introduced Ondo Nexus, a program designed to enhance liquidity for tokenized Treasuries, working alongside key partners like Franklin Templeton, Fundbridge Capital, and WisdomTree.

In another bold move, Ondo Finance announced plans to launch its own blockchain, Ondo Chain, designed specifically to attract Wall Street investors to the crypto space. The announcement came during the first-ever Ondo Summit in New York City.

In related news, World Liberty Financial (WLF), a DeFi platform with ties to the Trump organization, has been actively purchasing digital tokens in recent months and recently acquired $470,000 worth of ONDO, the native cryptocurrency of Ondo Finance. While the price of ONDO has seen a slight dip of 0.4% in the last 24 hours and a 7% decrease over the past 7 days, the continued strategic moves by Ondo Finance signal strong potential for future growth.