Ondo Finance Launches USDY on Stellar, Unlocking Onchain U.S. Treasury Yields

Ondo (ONDO)

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  • USDY offers 5.3% yield backed by U.S. Treasuries.
  • Now live on five Stellar apps for payments, savings, and DeFi.
  • Expands global access to yield-bearing stablecoins.

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Ondo Finance has launched its yield-bearing stablecoin USDY on the Stellar network, unlocking new ways for global users to access U.S. Treasury–backed returns. The announcement came during the Stellar Meridian event in Rio de Janeiro on September 17, marking a major step in bridging traditional finance with blockchain-based payments.

Yield-Bearing Stablecoin Meets Fast, Low-Cost Payments

USDY—often called a “yieldcoin”—is backed by short-term U.S. Treasuries and currently manages over $650 million across nine blockchains. It offers holders an annual yield of 5.3% while maintaining dollar stability. By deploying on Stellar, Ondo Finance aims to make this product available to both retail users and institutions through Stellar’s fast, low-fee payment rails.

Denelle Dixon, CEO of the Stellar Development Foundation, said the integration aligns with Stellar’s mission: enabling affordable cross-border payments while adding new layers of utility for users and businesses worldwide.

New Opportunities for Institutions and DeFi

Ondo Finance says balances held in USDY on Stellar can do more than sit idle. They can serve as collateral in DeFi protocols, power institutional treasury strategies, or earn yield on remittance flows. This opens the door for investors outside the U.S. to gain exposure to Treasuries without losing blockchain-based liquidity.

Chief Strategy Officer Ian De Bode noted, “Stablecoins unlocked global access to the U.S. dollar. With USDY, we’re taking the next step by bringing U.S. Treasuries onchain.”

Also Read: Ondo Finance ONDO Surges 15% as Tokenized Assets Drive DeFi Growth

USDY Goes Live on Five Stellar Apps

USDY is already available on five Stellar-based platforms: LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet. Users can now access daily yield accrual for payments, savings, and lending activities. This integration supports Stellar’s broader push to connect onchain finance with real-world use, providing an accessible route for capital-efficient cross-border transfers.

Ondo Finance’s launch on Stellar signals growing demand for yield-bearing stablecoins that merge traditional safety with blockchain speed. It could set a precedent for how real-world assets enter decentralized finance, especially in emerging markets seeking dollar stability and return generation.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.