- Ondo Finance has launched USDY, a yield-bearing stablecoin on the Stellar network, backed by U.S. Treasuries and bank deposits.
- Users earn daily yield with USDY while keeping their funds liquid, and they can use it for payments, DeFi collateral, and cross-border transactions.
Ondo Finance has officially launched USDY, a yield-bearing stablecoin, on the Stellar network, offering a new way for users to earn while holding digital dollars. Unlike traditional stablecoins, USDY generates daily yield backed by short-term U.S. Treasuries and bank deposits, providing both security and liquidity.
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Daily Yield Without Losing Liquidity
USDY allows individuals, small businesses, and institutions to preserve value while earning interest. Users can hold USDY for everyday transactions without locking their funds, making it a practical alternative to traditional bank savings or standard stablecoins that don’t generate returns. Institutions benefit from treasury management opportunities, accessing a safe, interest-bearing asset 24/7.
Collateral and DeFi Integration
Beyond being a savings tool, USDY can be used as collateral within Stellar’s decentralized finance (DeFi) ecosystem. This opens opportunities for borrowing and lending on Stellar-based platforms, giving users more financial flexibility. Ondo Finance emphasizes that balances, which would otherwise sit idle during cross-border payments, can now earn yield until settlement, enhancing efficiency for international transfers.
Stellar Ecosystem Adoption
USDY is already integrated into major Stellar-based apps, including LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet. This immediate availability allows users to leverage the stablecoin for payments, savings, and DeFi activities without delay.
Denelle Dixon, CEO of the Stellar Development Foundation, highlighted the innovation: “The global reach of the Stellar ecosystem combined with a yield-bearing asset like USDY levels up what is possible onchain.” Ondo Finance’s Chief Strategy Officer, Ian De Bode, added, “Stablecoins unlocked global access to the U.S. dollar. With USDY, we’re taking the next step by bringing U.S. Treasuries onchain in a form that combines stability, liquidity, and yield.”
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A First of Its Kind on Stellar
While Stellar hosts several fiat-backed stablecoins like USD Coin (USDC) and EURC, those tokens maintain a fixed value without generating returns. USDY differentiates itself by combining stability, liquidity, and automated yield, marking a first for the Stellar network.
With USDY now live, Stellar users gain a powerful new tool for savings, payments, and DeFi participation, all while earning daily returns. This launch positions Ondo Finance at the forefront of next-generation stablecoins, bridging traditional finance and blockchain innovation.
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