Ondo Finance and Mantle Launch Their USDY Token:
- Ondo Finance and Mantle have recently announced the launch of their new token, USDY, a stablecoin backed by real-world assets (RWA).
- USDY positions itself as a secure alternative to traditional stablecoins.
- With the support of a $2 billion treasury, Mantle and Ondo Finance are committed to providing deep liquidity.
Mantle and Ondo Finance have announced the launch of the USD Yield (USDY) token, a yield token backed by real-world assets (RWA). This digital financial product, built on Mantle’s Layer 2, provides exposure to US Treasury yields directly from your crypto wallet.
Before we delve deeper, we have written a dedicated article on Ondo Finance, which you can find here: [link to article]
In practice, USDY is backed by bank deposits and short-term US Treasury bonds. This approach offers investors, especially institutional ones, the accessibility, utility, and privacy of stablecoins, while being protected by structural security measures comparable to traditional financial institutions.
“RWA [real-world assets] is expected to play a key role in bringing sustainable yield to Mantle’s wider DeFi ecosystem, and USDY and mUSD are crucial pieces of the puzzle,”
– said Jordi Alexander, Chief Alchemist at Mantle
With the impending arrival of mUSD, a wrapped version of USDY designed to maintain a one-to-one peg to the dollar while distributing interest in the form of new tokens, Ondo Finance aims to strengthen its position as a leader in the tokenized securities industry.
A Liquid and Accessible Ecosystem
The USDY initiative benefits from significant initial liquidity through Mantle’s $2 billion treasury.
This financial resource will enable the injection of substantial liquidity into decentralized exchanges (DEXs) built on Mantle, regarding the supply of USDY and mUSD. As a result, this expands the potential use cases for these tokens within the Mantle ecosystem, including as collateral for lending and derivatives protocols.
Ultimately, by integrating real-world assets onto the blockchain, Mantle and Ondo Finance pave the way for new opportunities and a structured framework for institutional investors.