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 collaboration enables users to access USDY and its tokenized United States Treasurys product seamlessly across multiple blockchain ecosystems without the need to mint new tokens or swap assets between chains.
Integrating LayerZero’s Omnichain Fungible Token (OFT) standard has positioned USDY as a compelling alternative to traditional stablecoins like USD Coin and Tether. The USDY yieldcoin is now fully fungible 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, ensuring its stability and reliability. With a total value locked (TVL) exceeding $450 million and availability on eight blockchain networks including Ethereum and Solana, USDY has emerged as a prominent player in the tokenized Treasury market.
LayerZero’s OST standard facilitates seamless token transfers across multiple blockchains by burning tokens on the source chain, creating a unified supply across networks. This innovative approach eliminates the need for asset wrapping, middle chains, or liquidity pools, enhancing efficiency and usability for users.
The tokenized Treasury market has experienced significant growth in recent years, with a collective market capitalization of $2.5 billion as of November 26. Ondo, as the leading tokenized US Treasury protocol with a TVL of $650 million, has established itself as a key player in this space.
As the tokenized RWAs market represents a $30-trillion global opportunity, the partnership between Ondo and LayerZero marks a significant milestone in expanding the accessibility and utility of USDY for users worldwide.
Please note that USDY is not available to US investors and has a transfer restriction of 40 days.
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