- Ondo Finance and the Stellar network have joined forces to expand access to blockchain and open up new opportunities for real-world asset financing.
- Through this partnership, Stellar will demonstrate its ability to efficiently manage large-scale activities by processing a high volume of transactions.
Ondo Finance, one of the largest issuers of tokenized US Treasury bonds, has revealed its intention to launch United States Dollar Yield (USDY) on the Stellar network. The partnership is designed to enhance USDY’s cross-border payment capabilities, bringing increased efficiency and security to institutional workflows. According to the announcement on X, this integration will be operational in the coming months, offering the crypto-currency ecosystem new growth prospects.
Ondo will be bringing USDY to the @StellarOrg network, offering yield-bearing RWAs to Stellar’s global ecosystem of treasury management, collateralization, and global payments services, with over 400,000 global cash on and off ramps.
Stellar connects global finance onchain with… pic.twitter.com/1wUB0wBuQG
— Ondo Finance (@OndoFinance) February 6, 2025
As a reminder, USDY is a stablecoin with a yield backed by short-term US Treasuries and bank demand deposits, offering institutions a stable and secure investment option. By focusing on regulatory compliance and institutional-level security, Ondo Finance positions USDY as a more stable, yield-generating alternative to traditional stablecoins such as USDT and USDC.
USDY integration with Stellar
In analyzing the report, CNF found that Stellar was chosen for the USDY deployment because of its strong alignment with Ondo Finance’s objectives of offering secure, compliant and efficient financial solutions. Stellar’s integrated compliance features ensure that USDY adheres to industry standards for security and regulatory requirements, providing a seamless experience for institutional users.
In addition, Stellar’s global distribution network, spanning over 180 countries, provides the necessary channels for widespread adoption of USDY, increasing its accessibility and visibility worldwide.
The deployment of USDY on the Stellar network is expected to achieve new levels of efficiency and productivity by leveraging Stellar’s decentralized payment infrastructure. USDY offers key benefits including cash management and collateralization, enabling institutions to earn a return on unused balances while using it as a secure collateral option for multi-party financial transactions, with 24/7 liquidity ensuring efficient asset management.
In addition, the remunerative nature of USDY helps optimize capital efficiency in cross-border payments, providing companies with liquidity and streamlining global payment processes, benefiting both large corporations and small businesses expanding internationally. In addition, USDY preserves wealth while earning a return linked to the stability of US assets, making it an ideal solution for consumers, small businesses and creators looking to achieve their financial goals while retaining liquidity for day-to-day expenses.
This collaboration follows other important initiatives, such as the launch of Ondo Global Markets (Ondo GM). As we reported, Ondo GM is a tokenization platform that provides on-chain access to a variety of real-world assets, including stocks, bonds and ETFs. Ondo has also introduced Ondo Nexus, a program designed to improve the liquidity of tokenized Treasuries, in collaboration with key partners such as Franklin Templeton, Fundbridge Capital and WisdomTree.
In another bold move, Ondo Finance announced plans to launch its own blockchain, Ondo Chain, designed specifically to attract Wall Street investors to the crypto space. The announcement was made at the first-ever Ondo Summit in New York.
In a similar vein, World Liberty Financial (WLF), a DeFi platform linked to the Trump Organization, has been actively buying digital tokens in recent months and recently acquired $470,000 worth of ONDO, Ondo Finance’s native crypto-currency. While the price of ONDO has seen a slight drop of 0.4% in the last 24 hours and a drop of 7% in the last 7 days, Ondo Finance’s continued strategic moves signal strong potential for future growth.
