Ondo Finance Launches USDY, a Yield-Generating Stablecoin, on Cosmos
The Cosmos ecosystem expands with the introduction of Ondo US Dollar Yield (USDY), the first native yield-generating stablecoin, created by Noble blockchain and Ondo Finance.
This launch marks a significant milestone for Cosmos ecosystem users, offering new investment opportunities with attractive yields.
What is Ondo’s USDY?
USDY is a stablecoin backed by short-term US Treasury notes and on-demand deposits in US banks. This unique structure allows USDY to offer investors a return, a first for a native stablecoin in the Cosmos ecosystem.
Integrated natively on over 90 Cosmos-specific application blockchains, USDY provides a yield-bearing stablecoin solution for diversified use within the ecosystem.
Adoption by Various Chains and DeFi Projects
The launch of USDY on the Noble blockchain is just the beginning of its integration into the Cosmos ecosystem. Several other Cosmos chains and DeFi projects will utilize USDY, including Injective, Osmosis, Kujira, and Pyth. This expanded adoption is facilitated by the flexible and secure nature of USDY, enabling a wide range of decentralized financial applications.
Injective, in particular, will see increased usage of USDY. Helix, a derivatives exchange based on Injective, will introduce USDY as a spot asset and collateral pair for perpetual markets. This will allow users to trade on-chain while earning yields with USDY. Hydro, another protocol on Injective, will integrate USDY in its structured assets, enabling users to generate on-chain returns.
Noble: A Native Asset Issuance Network
Noble, known as the native asset issuance network for Circle’s USDC stablecoin in the Cosmos ecosystem, plays a key role in this launch. Since the initial deployment of USDC on Noble in September 2023, over $243 million of USDC has been natively issued on this blockchain.
Noble has also collaborated with other real-world asset tokenization projects, such as its partnership with Hashnote to introduce USYC, an on-chain representation of Hashnote’s short-term yield fund, to the Cosmos ecosystem.
