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Ondo Finance launches token backed by short-term U.S. Treasuries and bank deposits, offering an annual percentage yield (APY) of 4.25% on Sei Network’s blockchain as a regulated, interest-bearing alternative to traditional stablecoins

July 22, 2025 //  by Finnovate

Ondo Finance, a company specializing in tokenizing real-world assets, has launched its flagship product, United States Dollar Yield (USDY), on the Sei Network, a high-speed Layer 1 blockchain. USDY is a yield-bearing token backed by short-term U.S. Treasuries and bank deposits, offering an annual percentage yield (APY) of 4.25%. It is designed to meet institutional regulatory standards and is compatible with decentralized finance (DeFi) ecosystems. The Sei Network, a high-performance blockchain, has processed billions of transactions across over 35 million wallets since its mainnet launch in 2023. The launch aligns with Ondo Finance’s goal of democratizing access to institutional-grade financial products and Sei’s broader vision of building scalable infrastructure for high-performance digital asset markets. The integration of native USDC and Circle’s Cross-Chain Transfer Protocol (CCTP V2) is expected to strengthen the network’s digital dollar infrastructure and cross-chain functionality. The integration of USDY into the Sei Network is expected to enable several key use cases across the Sei ecosystem: Treasury and liquidity management — Protocols and DAOs can allocate idle stablecoin liquidity into yield-bearing, transparent assets to enhance capital efficiency. RWA-backed stablecoin utility — USDY offers a regulated, interest-bearing alternative to traditional stablecoins and can be used in Sei-native applications and on-chain payment flows. Composable DeFi strategies — With fast block times and parallel execution, USDY can be seamlessly integrated into money markets, decentralized exchanges, and structured products, enabling innovative yield strategies backed by real-world assets.

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Category: Blockchain & Web 3, Innovation Topics

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