Quick Breakdown
- First-of-its-kind: USDY is the first yield-bearing stablecoin launched on Stellar.
- Backed by Treasuries: Returns come from U.S. Treasuries and bank deposits.
- Instant access: Already integrated into Stellar apps like LOBSTR and Soroswap.
Ondo Finance has launched its United States Dollar Yield (USDY) stablecoin on the Stellar network, introducing the first yield-generating dollar-backed asset to Stellar’s ecosystem.
A first for stellar users
USDY is unique among stablecoins available on Stellar. Unlike USD Coin (USDC) or EURC, which maintain value but offer no returns, USDY automatically accrues yield from U.S. Treasuries and bank deposits. This makes it the first stablecoin on Stellar to combine price stability with passive income.
Benefits for individuals and institutions
For retail users and small businesses, USDY offers a way to preserve value in U.S. dollars while earning yield without sacrificing liquidity for daily spending. Institutions can also leverage the token for treasury management, accessing a 24/7 interest-bearing asset.
Beyond saving, USDY can serve as collateral within Stellar’s DeFi ecosystem, powering lending and borrowing. In cross-border payments, idle balances awaiting settlement can now generate income until transactions are finalized.
Seamless integration with stellar apps
The stablecoin is already live across major Stellar-based applications, including LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet. According to Ondo Finance, this integration ensures immediate utility across payments, DeFi, and savings products.
Other tokenized assets on Stellar, such as Etherfuse’s Stablebonds, provide returns tied to treasuries, but they perform more like bond instruments than stablecoins integrated into payments and DeFi.
“The global reach of the Stellar ecosystem combined with a yield-bearing asset like USDY levels up what is possible onchain,”
said Denelle Dixon, CEO of the Stellar Development Foundation. Ondo’s Chief Strategy Officer Ian De Bode added,
“Stablecoins unlocked global access to the U.S. dollar. With USDY, we’re taking the next step by bringing U.S. Treasuries onchain in a form that combines stability, liquidity, and yield.”
Meanwhile, Alchemy Pay recently partnered with Ondo Finance to expand global access to USDY. Through this integration, users in 173 countries can now purchase USDY on the Solana blockchain using their local fiat currencies, thanks to Alchemy Pay’s fiat on-ramp infrastructure.
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