Ondo Finance and Arbitrum Foundation announced the launch of Ondo US Dollar Yield on Arbitrum.
In an announcement shared with crypto.news on August 27, Ondo Finance (ONDO) and Arbitrum (ARB) said that the USDY tokenized note has been launched on Ethereum’s Layer 2 scaling solution.
Ondo US Dollar Yield is a yield-bearing asset backed by short-term US Treasury bonds, currently representing $347 million in market value. According to data from RWA.xyz, USDY is active on Ethereum (ETH) and Solana (SOL), among other blockchain networks.
USDY to Unlock DeFi Benefits for Arbitrum Users
By launching USDY on Arbitrum, it is now available on another major decentralized finance platform. In the announcement on August 27, the Arbitrum Foundation said that Ondo’s tokenized treasury asset is now offering its real-world asset investment to users of Arbitrum’s leading DeFi protocols, Camelot and Dolomite.
“We are excited 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, Vice President of Partnerships at Ondo Finance.
The integration will support Arbitrum’s DeFi ecosystem as it grows, providing new benefits to ARB holders, Wheeler added.
USDY holders earn 5.35% annual percentage yield and will allow non-US investors on Arbitrum – both retail and institutional – to access the benefits of stablecoins, an attractive APY, and institutional-grade investor protections.
Growth of the RWA ecosystem
Ondo’s launch of USDY on Arbitrum follows ArbitrumDAO’s decision to diversify six million ARB tokens into Ondo’s tokenized note. The program aims to support the adoption of RWA on Arbitrum, with the ARB placed in Ondo USDY representing 17% of Arbitrum’s total treasury investment of $36 billion.
At the same time, the growth of the RWA market and the tokenized Treasury space in particular has seen the total market value rapidly cross the $2 billion mark.
BlackRock, Franklin Templeton and Ondo Finance are the top providers in terms of market capitalization, while OpenEden, Hashnote and Superstate are seeing increased traction.
