Originally published on: November 26, 2024
Ondo Finance, a leading tokenized real-world asset (RWA) protocol, has joined forces with LayerZero to enhance the fungibility of its flagship yieldcoin, USDY, across various blockchain networks. This groundbreaking development eliminates the need for minting new tokens or swapping assets between chains, making it easier for users to access USDY and its tokenized United States Treasurys product.
By integrating LayerZero’s Omnichain Fungible Token (OFT) standard, Ondo has positioned USDY as a competitive alternative to traditional stablecoins like USDC and USDT. The USDY yieldcoin is now fully compatible across Ethereum, Mantle, and Arbitrum, with plans to expand to more networks in the near future.
Designed to offer users a 4.9% annual percentage return (APR), each USDY token is backed by bank deposits and short-term Treasury bills, providing a secure and high-yield investment option. With a total value locked (TVL) exceeding $450 million and availability on eight blockchain networks, including Ethereum and Solana, USDY has quickly distinguished itself as a top choice for investors.
In addition to USDY, Ondo also offers the Ondo Short-Term US Government Treasurys (OUSD) product, further expanding its range of tokenized Treasury options. LayerZero’s OST standard facilitates seamless token transfers across multiple blockchains by burning tokens on the source chain, creating a unified supply across all networks without the need for wrapping or liquidity pools.
The tokenized Treasury market has experienced exponential growth in 2024, with a total market capitalization of $2.5 billion as of November 26. Ondo leads the market as the most popular tokenized US Treasury protocol, boasting a TVL of $650 million and surpassing competitors like Securitize, Hashnote, and Franklin Templeton.
As the tokenized RWA market continues to flourish, opportunities for global investors are expanding rapidly. With a market potential of $30 trillion worldwide, tokenized RWAs present a lucrative investment landscape for those seeking innovative financial opportunities.
Please note that USDY is not available for US investors and has a 40-day transfer restriction in place.
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