Ondo Finance has officially launched USDY, a yield-bearing stablecoin backed by U.S. Treasuries and bank deposits, on the Stellar network making it the first product of its kind available to Stellar users.
A Stablecoin That Earns While You Hold
Unlike traditional stablecoins, which simply peg to the U.S. dollar, USDY accrues daily yield from short-term Treasuries and demand deposits while maintaining full liquidity. That means individuals, small businesses, and institutions can earn interest on their holdings without locking them up.
- Individuals and small businesses can use USDY to save and spend at the same time.
- Institutions can deploy it for treasury management, gaining a safe, yield-generating asset that’s available 24/7.
Expanding Use Cases in Stellar’s Ecosystem
USDY isn’t just for saving it’s designed to fit into Stellar’s DeFi and payments ecosystem:
- As collateral for borrowing and lending.
- In cross-border payments, where balances can generate yield instead of sitting idle until settlement.
“The global reach of the Stellar ecosystem combined with a yield-bearing asset like USDY levels up what is possible onchain,” said Denelle Dixon, CEO of the Stellar Development Foundation.
Immediate Integration
At launch, USDY is already integrated into several Stellar-based apps, including LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet making it instantly usable for saving, payments, and DeFi participation.
Why It’s Different
This marks the first time Stellar users can access a stablecoin that doesn’t just hold value but also generates yield automatically. While the network already hosts fiat-backed options like USDC and EURC, those coins are stable but non-yielding.
Other tokenized assets on Stellar, such as Stablebonds from Etherfuse, provide returns linked to Treasuries, but they act more like bond instruments rather than liquid stablecoins for everyday use.
Ondo Finance’s Chief Strategy Officer Ian De Bode summed it up:
“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.”
Bottom line: USDY transforms the way people and businesses interact with stablecoins on Stellar, merging the best of both worlds dollar stability and Treasury-backed yield all while staying liquid and accessible.
