Arbitrum Integrates Ondo Finance’s USDY Stablecoin, Adding Tokenized Treasuries To Its DeFi Ecosystem
In Brief
Ondo Finance partnered with the Arbitrum Foundation to introduce USDY, a tokenized note secured by short-term US Treasuries, on Arbitrum.
Tokenized real-world asset (RWA) provider Ondo Finance revealed a partnership with the organization responsible for the development of the Arbitrum (ARB) blockchain ecosystem, Arbitrum Foundation aimed at introducing Ondo USDY, a tokenized note secured by short-term United States Treasuries, on the Arbitrum network.
“We are thrilled to see USDY launch on Arbitrum, paving the way for some of the largest decentralized finance applications to leverage our tokenized US treasuries,” said Katie Wheeler, Vice President of Partnerships at Ondo Finance, in a written statement. “Arbitrum’s DeFi ecosystem has demonstrated substantial growth, making it a natural fit given USDY’s composability and growing momentum across DeFi. This launch will further strengthen that trajectory and unlock new benefits for users in the Arbitrum ecosystem,” she added.
Arbitrum has surpassed $2.7 billion in Total Value Locked (TVL), establishing itself as one of the largest blockchain networks with deep asset liquidity and an expanding user and developer base. As a leading Layer 2 scaling solution for Ethereum, it utilizes Optimistic rollup technology to enhance transaction throughput for decentralized applications (dApps), all while ensuring the security of the Ethereum blockchain.
This integration introduces USDY to one of the largest decentralized finance (DeFi) ecosystems, advancing Ondo Finance’s attempts to increase the utility and accessibility of tokenized RWAs on-chain. USDY is now available within Arbitrum’s DeFi protocols, such as Camelot and Dolomite.
With more than $330 million in TVL across multiple blockchains, the stablecoin offers a 5.35% annual percentage yield (APY). It allows both global individual and institutional investors on Arbitrum to use the advantages of the stability of stablecoins, coupled with a competitive yield and the institutional-grade investor protections typical of traditional finance.
ArbitrumDAO STEP Invests $6M ARB In USDY, Boosting RWA Adoption
Ondo Finance is dedicated to providing institutional-grade financial offerings and services to a wider audience. It focuses on tokenizing securities and developing decentralized protocols to advance the functionality and distribution of these tokens. It collaborates with institutional partners such as BlackRock and Morgan Stanley and is backed by venture capital firms, encompassing Founders Fund, Pantera Capital, and Coinbase Ventures.
The deployment of USDY follows the ArbitrumDAO STEP Committee’s recent decision to allocate 6 million ARB from the treasury into USDY, promoting the adoption of RWAs on Arbitrum. This investment in Ondo USDY accounts for 17% of the total 36 billion ARB treasury, making it the second largest distribution after BlackRock’s BUIDL fund.
“We’re excited to see Ondo join the Arbitrum ecosystem,” said Luke Xiao, Senior Partnerships Manager at Offchain Labs, in a written statement. “This integration introduces a new asset for DeFi users, further expanding the opportunities available on Arbitrum. The inclusion of Ondo products in the Arbitrum DAO STEP program underscores the increasing demand for real-world assets on-chain, and we believe this launch will play a key role in advancing the DeFi space on Arbitrum,” he added.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
