For the first time ever, users on Injective, a lightning-fast blockchain for Web3 finance applications, can acquire tokenized US Treasuries in the form of the USD Yield token (“USDY”) from Ondo Finance. Ondo is the market leader in connecting traditional financial assets to blockchain networks, with over $200 million of its tokenized US Treasuries circulating today.
Eligible users can now access USDY by bridging it from Ethereum through the Injective Hub, allowing them to earn yield on tokenized US Treasuries entirely on-chain. The integration with Ondo cements Injective’s position as a leading L1 for both interoperability and Real World Assets (RWAs).
USDY in a Nutshell
Ondo is the issuer of USD Yield (USDY), the world’s first tokenized note secured by US Treasuries. USDY provides similar accessibility and utility as stablecoins while paying token holders a yield. In essence, USDY offers a variable interest rate adjusted monthly in advance by Ondo with yield automatically compounded.
Ondo is backed by some of the largest investors in the space such as Pantera, Founders Fund and Coinbase.
Expanding Real World Asset Tokenization with Injective
The USDY token will now work across Ethereum and Injective, allowing users on Ethereum to seamlessly onboard onto Injective and earn yield on tokenized treasuries.
“USDY incorporates mature financial structuring and robust investor protections while catering to the diverse needs of both individual and institutional investors. USDY is a significant stride towards a more inclusive and secure financial landscape,” said Nathan Allman, CEO of Ondo Finance.
The implementation will also be the first time that users across the broader Cosmos ecosystem can access tokenized treasuries with USDY being bridged from Ethereum. Injective will serve as the primary hub across the IBC world for interacting with RWAs such as USDY.
Users will be able to access USDY either by bridging USDY over to Injective from Ethereum using the Injective Hub or via a host of native dApps built on Injective such as Helix, the premier decentralized exchange on the network. Injective has directly integrated some of the largest institutions on its chain, enabling the highest levels of liquidity and capital efficiency for new assets such as RWAs.
RWAs are one of the fastest growing categories in crypto today.
Injective’s expansion of the RWA industry is a testament to its continued efforts towards democratizing finance for all. The ability for users to interact with USDY on-chain works to break down the barriers that typically exist in the world of traditional finance.
Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.
About Ondo Finance
Ondo Finance provides institutional-grade, blockchain-enabled investment products and services. Ondo has an asset management arm that creates and manages tokenized financial products as well as a technology arm that develops decentralized finance protocols and blockchain solutions.
Ondo’s first core products are tokenized cash equivalents that deliver very low risk, high quality yield from U.S. Treasuries, money market funds, and similar instruments, offering on-chain investors an alternative to stablecoins where holders rather than issuers earn the vast majority of the underlying asset yield. Ondo also developed Flux Finance, a DeFi lending protocol supporting tokenized treasuries as collateral, recreating treasury repo markets on-chain while creating on-chain utility for Ondo’s tokenized securities.
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This post is for informational purposes only and is not financial advice or an endorsement of any particular project or application.