DeFi
Ondo Launches First Tokenized Treasury Product on Cosmos
Ondo Finance’s yield-bearing stablecoin $USDY is now available for the Cosmos ecosystem via Noble.
Ondo Finance launches its US dollar yield token, $USDY, on Cosmos’ asset issuance dApp, Noble, making it the first tokenized treasury bond product accessible on the Cosmos ecosystem.
The launch means that Cosmos chains including Injective, Helix, Osmosis, and Pyth will be able to leverage USDY in decentralized finance (DeFi).
Cosmos, also known as the Internet of Blockchains (IBC), is a proof-of-stake blockchain that acts as the central hub of an ecosystem of interoperable application chains built on it.
USDY is a tokenized note backed by U.S. Treasuries and demand bank deposits. The product, which is not available to retail or non-U.S. investors, allows holders to earn yield while using the stablecoin elsewhere in DeFi. USDY’s current native yield rate is 5.3% APY.
Noble is a routing hub for asset transfers and issuance for the Cosmos Interchain. The team raised $3.3 million in an investment round led by Polychain Capital in October 2023 and launched USDC and USDY on Cosmos, with plans to integrate Hashnote’s USYC and FRAX to the Interchain.
The cumulative market capitalization of Noble’s stablecoins is $246 million, 99% of which is denominated in USDCand 1% in Zimbabwe Dollar.
USDY has a market cap of $323 million, compared to $33 billion for USDC and $114 billion for USDT.
During the announcement, Ondo Finance CEO said, “Our collaboration with Noble expands Ondo’s reach into the broader Cosmos blockchain ecosystem, paving the way for new decentralized finance applications and their users to benefit from Ondo’s market-leading yieldcoin.”