Ondo Finance and Mantle Collaborate to Bridge DeFi and Real-World Assets with USDY
In a groundbreaking move, the decentralized autonomous organization (DAO)-led web3 ecosystem, Mantle, has joined forces with Ondo Finance, a prominent tokenized financial products platform, to introduce USDY – a yield-generating token backed by real-world assets. This strategic collaboration marks a significant development in the DeFi space, providing users with a unique alternative to stablecoins like Tether’s USDT and Circle’s USDC.
USDY, an upgradeable Ethereum ERC-20 token, is set to become a prominent player in the crypto world. This innovative financial instrument is backed by short-term U.S. treasuries and bank demand deposits, providing holders with the potential to earn yields from these underlying assets, resulting in an accumulating token value.
The introduction of USDY to the Mantle Network follows the recent launch of the Ethereum Layer 1 to Mantle Layer 2 bridge dedicated to USDY. This expansion signifies the commitment of both Mantle and Ondo Finance to enhancing the accessibility and utility of USDY within the crypto ecosystem. Mantle has made USDY available on decentralized exchanges such as Agni Finance and FusionX Finance, ensuring a wide-reaching user base can access this novel financial instrument.
Ondo Finance, a leader in the tokenized securities space, boasts approximately 50% market share in this niche, according to Steakhouse Financial Dune Analytics. In the case of USDY, Ondo Finance has legally structured it as a tokenized bearer instrument, allowing users to seamlessly enter the world of USDY via Mantle using Ondo Finance’s mint and bridging mechanism.
Mantle’s Chief Alchemist, Jordi Alexander, expressed excitement about the partnership with Ondo Finance, highlighting the pivotal role real-world assets (RWAs) play in bringing sustainable yield to Mantle’s DeFi ecosystem. “We are thrilled to work with Ondo Finance to build a highly liquid and easily accessible ecosystem for USDY and mUSD to be used and traded just like any stablecoin, but with the added benefit of tapping into real-world U.S. Treasury yield right from the crypto wallet,” Alexander stated.
The partnership doesn’t stop at USDY alone. Ondo Finance has plans to issue a rebasing counterpart called mUSD in the coming weeks. Designed to maintain a peg to $1, mUSD will also distribute interest via new tokens, further expanding the range of options for DeFi users.
Nathan Allman, the Founder and CEO of Ondo Finance, expressed delight in partnering with Mantle to bring USDY to the market and provide deep secondary market liquidity. This partnership aims to create an accessible and highly liquid ecosystem for USDY and mUSD, offering users a seamless and efficient way to access these tokens.
The launch of USDY and the impending release of mUSD represent a major leap forward in the DeFi space, offering users a fresh perspective on stable value and real-world assets. As Mantle and Ondo Finance continue to drive innovation in this burgeoning field, the future of decentralized finance looks more promising than ever. Users and investors should keep a close eye on these developments as they unfold, as they could significantly impact the world of cryptocurrencies and DeFi.
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