Originally published on: November 26, 2024
Ondo Finance, a leading tokenized real-world asset (RWA) protocol, has teamed up with LayerZero to make its flagship yieldcoin USDY available across various blockchain networks. This collaboration allows users to access USDY and its tokenized US Treasurys product seamlessly across multiple ecosystems without the need to mint new tokens or swap assets between chains.
By integrating LayerZero’s Omnichain Fungible Token (OFT) standard, Ondo has enhanced USDY’s fungibility, positioning it as a strong competitor to traditional stablecoins like USDC and USDT. The USDY yieldcoin is now supported on Ethereum, Mantle, and Arbitrum networks, with plans for further expansion to other networks in the pipeline.
Designed to offer users a 4.9% annual percentage return (APR), USDY is backed by bank deposits and short-term Treasury bills. With a total value locked (TVL) exceeding $450 million and availability on eight blockchain networks, including Ethereum and Solana, USDY has gained significant traction within the crypto community.
Ondo also offers another tokenized treasury product, Ondo Short-Term US Government Treasurys (OUSD), further solidifying its position in the tokenized RWA market. LayerZero’s OST standard facilitates seamless transfers of USDY tokens across multiple blockchains without the need for asset wrapping or liquidity pools, creating a unified supply across networks.
According to data from RWA.xyz, the total market capitalization of tokenized Treasury products has tripled in 2024, reaching $2.5 billion as of November 26. Ondo stands out as the most popular tokenized US Treasury protocol, leading competitors such as Securitize, Hashnote, and Franklin Templeton with a TVL of $650 million.
Tokenized RWAs represent a significant market opportunity globally, with a potential market size of $30 trillion, as highlighted by Polygon’s Colin Butler. While USDY presents lucrative investment opportunities, it is important to note that it is not available to US investors and has a 40-day transfer restriction.
As the crypto landscape continues to evolve, collaborations like the one between Ondo and LayerZero pave the way for broader adoption of tokenized assets across multiple blockchain networks. Stay tuned for more exciting developments in the decentralized finance space!