Ondo Finance announced its partnership with the Solana-based decentralized exchange Drift Protocol, opening up its tokenized U.S. Treasury bond USDY as collateral for perpetual contracts and allowing for borrowing. This marks a new use case for RWA (real-world assets), bringing more practicality to RWA and increasing capital efficiency.
RWA (real-world assets) is currently a focus in the cryptocurrency market. On March 20 of this year, after BlackRock launched its first tokenized fund BUIDL “BlackRock USD Institutional Digital Liquidity Fund,” Ondo Finance ($ONDO) surged nearly 30% on the same day and has risen more than 500% so far this year.
Ondo Finance’s USDY can now be used as collateral for Drift Protocol’s perpetual contracts
Yesterday, Ondo Finance announced its partnership with the Solana-based decentralized exchange Drift Protocol, opening up Ondo Finance’s tokenized U.S. Treasury bond USDY as collateral (margin) for Drift Protocol’s perpetual contracts and allowing for borrowing.
This is a new use case in the RWA field. Previously, tokenized U.S. Treasury bonds could only be used to earn interest, but now they can also be used for trading operations. This brings more practicality to RWA and increases capital efficiency, with the prospect of more exchanges gradually offering support. In a joint statement, Ondo Finance’s President and COO Justin Schmidt commented that the two parties will continue to expand their cooperation in the future to bring more assets onto the chain and enhance the utility for traders.
USDY is the fourth-largest tokenized U.S. Treasury bond, with a scale exceeding 160 million yuan
Ondo Finance’s USDY is an alternative to the U.S. dollar stablecoin, backed by short-term U.S. Treasury bonds and bank deposits. As of the deadline, the annualized yield is 5.30%, and the fee is 0.05%. Users need to wait 40 to 50 days after purchase before they can transfer it on-chain, with support for Ethereum, Mantle, Solana, Sui, and Aptos public chains.
Ondo Finance emphasizes that USDY cannot and must not be provided, sold, or otherwise provided to the United States or to Americans. USDY has also not been registered under U.S. securities laws.
Data from RWA.xyz shows that USDY has a market value of $165 million, making it the fourth-largest tokenized U.S. Treasury bond product, second only to BlackRock’s BUIDL, Franklin Templeton’s FOBXX, and Ondo’s own $OUSG, which is only available to qualified investors.
Source: RWA.xyz
