Ondo Finance and Arbitrum Foundation announced the launch on Arbitrum of Ondo U.S. dollar yield.
Ondo Finance and Arbitrum announced on August 27 that the USDY tokenized note had been launched on the Ethereum layer-2 scale solution.
Ondo U.S. dollar yield is a yield bearing asset that is secured by short term U.S. Treasury bonds. Its current market value is $347 million. According to RWA.xyz data, USDY has been launched on Ethereum and Solana amongst other blockchain networks.
USDY unlocks DeFi benefits to Arbitrum users
USDY has now been launched on Arbitrum and is available on a major decentralized platform. In an announcement made on August 27, Arbitrum Foundation announced that Ondo’s tokenized treasuries assets now offer their real-world investment to users of Arbitrum’s top DeFi protocol Camelot and Dolomite.
“We are thrilled to see USDY launch on Arbitrum, paving the way for some of the largest decentralized finance applications to leverage our tokenized US treasuries.”
Katie Wheeler, VP of partnerships at Ondo Finance.
Wheeler said that the integration will help Arbitrum expand its DeFi ecosystem, unlocking benefits for ARB owners.
USDY holders will earn 5.35% annual percentage yield. This will allow non-U.S. institutional and retail investors to take advantage of the stablecoins and attractive APY on Arbitrum, as well as institutional-grade protection for their investments.
Growing RWA ecosystem
Ondo launched USDY on Arbitrum after ArbitrumDAO moved to diversify 6 million ARB tokens in Ondo tokenized notes. The program is designed to encourage RWA adoption, as the ARB that went into Ondo’s USDY represents 17% of Arbitrum’s total investment of 36 billion.
The total market value has surpassed $2 billion due to the rapid growth of the RWA and tokenized treasuries markets.
BlackRock, Franklin Templeton and Ondo Finance lead the market by capitalization, while OpenEden Hashnote and Superstate have seen increased interest.
