Ondo’s USDY launches on Arbitrum

Ondo Finance and Arbitrum Foundation have announced the launch of Ondo US Dollar Yield on Arbitrum.

Ondo Finance (ONDO) and Arbitrum (ARB) announced the launch of tokenized USDY banknotes on Ethereum layer-2 scaling solutions, they announced to crypto.news on August 27.

Ondo US Dollar Yield is a yield-generating asset collateralized by short-term US Treasury Bonds and currently has a market cap of $347 million. According to data from RWA.xyz, USDY is live on Ethereum (ETH) and Solana (SOL), among other blockchain networks.

USDY to Unlock DeFi Benefits for Arbitrum Users

USDY is now available on another major decentralized finance platform, launching on Arbitrum. In an announcement on August 27, the Arbitrum Foundation said that Ondo’s tokenized treasury asset now offers real-world asset investment for users on Arbitrum’s top DeFi protocols Camelot and Dolomite.

“We are excited to have USDY launched on Arbitrum. This paves the way for some of the largest decentralized finance applications to leverage our tokenized US Treasuries.”

Katie Wheeler, Vice President of Partnerships at Ondo Finance.

Wheeler added that the integration will support the expansion of Arbitrum’s DeFi ecosystem and unlock new benefits for ARB holders.

USDY holders will earn an annualized return of 5.35 percent, allowing non-U.S. investors (both retail and institutional) on Arbitrum to enjoy the benefits of stablecoins, attractive APY, and institutional-level investor protections.

Growing RWA ecosystem

Ondo’s USDY launch on Arbitrum follows ArbitrumDAO’s move to diversify its six million ARB tokens into Ondo’s tokenized note. The program aims to support RWA adoption on Arbitrum, with ARB placed on Ondo accounting for 17% of Arbitrum’s total treasury investment of $36 billion.

Meanwhile, growth in the RWA market and tokenized treasury space in particular has caused the total market value to quickly surpass $2 billion.

Leading providers by market capitalization are BlackRock, Franklin Templeton, and Ondo Finance, while OpenEden, Hashnote, and Superstate are gaining momentum.