Arbitrum Welcomes Ondo Finance's USDY Stablecoin, Integrating Tokenized Treasuries into its DeFi Landscape

Provider of tokenized real-world assets (RWA) Ondo Finance Announced a collaboration with the Arbitrum Foundation, the organization pioneering the development of the ARB blockchain ecosystem, aimed at launching Ondo USDY, a tokenized instrument backed by short-term US Treasury securities on the Arbitrum network. Arbitrum \"We're excited to witness the launch of USDY on Arbitrum, opening doors for some of the leading decentralized finance applications to utilize our tokenized US Treasuries,\" stated Katie Wheeler, the Vice President of Partnerships at Ondo Finance, in a formal statement. \"Given the significant growth of Arbitrum's DeFi ecosystem, it's a logical match for USDY's flexible use and rising popularity within DeFi. This launch is set to further enhance that momentum and unveil additional advantages for users within the Arbitrum ecosystem,\" she added.

With over $2.7 billion in Total Value Locked (TVL), Arbitrum has securely positioned itself as a major player among blockchain networks, characterized by substantial asset liquidity and a growing community of users and developers. As a top-tier Layer 2 scaling solution for Ethereum, it employs Optimistic Rollup technology to significantly boost transaction speeds for decentralized applications (dApps), all while maintaining the safety of the Ethereum blockchain.

This introduction sees USDY entering one of the biggest decentralized finance (DeFi) ecosystems, propelling Ondo Finance's mission to expand both the functionality and accessibility of tokenized RWAs on-chain. USDY is presently accessible through various DeFi platforms within Arbitrum, including Camelot and Dolomite.

With a remarkable $330 million in TVL across multiple blockchain platforms, this stablecoin offers an attractive annual percentage yield (APY) of 5.35%. It empowers individual and institutional investors worldwide on Arbitrum to capitalize on the stability that traditionally comes with conventional finance, paired with competitive yields and robust protections suitable for institutional investors.

ArbitrumDAO STEP Allocates $6 Million in ARB to USDY, Promoting Adoption of Real-World Assets stablecoins Focused on delivering institutional-grade financial services and products to a broader audience, it aims to tokenize securities and create decentralized protocols to enhance the utilization and distribution of these tokens. Collaborating with major institutional players such as BlackRock and Morgan Stanley, it also enjoys backing from venture capital invests like Founders Fund, Pantera Capital, and Coinbase Ventures.

The rollout of USDY follows the decision by the ArbitrumDAO STEP Committee to designate 6 million ARB from their treasury towards USDY, supporting the growth of RWAs on Arbitrum. This financial commitment to Ondo USDY represents 17% of the total 36 billion ARB held in treasury, marking it as the second most significant allocation after BlackRock’s BUIDL fund.

Ondo Finance \"We're eager to see Ondo become a part of the Arbitrum ecosystem,\" expressed Luke Xiao, the Senior Partnerships Manager at Offchain Labs, in an official statement. \"This collaboration brings forth a novel asset for DeFi participants, broadening the opportunities available on Arbitrum. The incorporation of Ondo offerings into the Arbitrum DAO STEP initiative emphasizes the escalating demand for real-world assets on-chain, and we believe this introduction will be pivotal in advancing the DeFi sector on Arbitrum,\" he added.

It's essential to recognize that the information shared on this page is not designed to serve as, nor should it be considered, legal, tax, investment, financial, or any kind of advisory. Always invest only what you can afford to lose, and if in doubt, seek independent financial counsel. For comprehensive details, we recommend reviewing the terms and conditions alongside the help and support sections offered by the issuer or advertiser. MetaversePost is committed to delivering accurate, unbiased reporting, yet please be aware that market conditions can shift without advance notice. recent decision Alisa, a committed journalist at Cryptocurrencylistings, focuses her writing on cryptocurrency, zero-knowledge proofs, investments, and the extensive domain of Web3. With a sharp eye for the latest trends and technologies, she provides in-depth insights to educate and captivate readers navigating the ever-changing world of digital finance.

Enso, LayerZero, and Stargate Collaborate to Execute One of Ethereum’s Largest Liquidity Transitions to Unichain