Ondo Finance, a tokenized real-world asset marketplace, has incorporated LayerZero’s interoperability protocol for multi-chain transfers of its tokenized assets.
A statement states that Ondo will use LayerZero’s technology to broaden the market reach of its U.S. Dollar Yield (USDY) stablecoin. This yield-bearing tokenized asset is worth more than $452 million.
The third-largest tokenized U.S. Treasury instrument at the moment is USDY. “Institutional-grade assets demand secure and reliable interoperability to fully unlock the potential of blockchain technology,” said Nathan Allman, chief executive officer of Ondo Finance.
Our partnership with LayerZero ensures seamless cross-chain transactions, providing the robust infrastructure necessary for institutions to confidently make their tokenized assets accessible omnichain across interconnected blockchains.”
LayerZero’s Omnichain Fungible Token Standard (OFT), which expands the capabilities of ERC-20 tokens for wider DeFi applications, will be used by Ondo.
The integration guarantees institutional-grade security with platforms like Polyhedra, Axelar, and LayerZero Labs supporting verification.
Users don’t need to generate new tokens on extra chains to access yield-bearing U.S. Treasuries. This integration makes Ondo’s USDY completely compatible with the Ethereum, Arbitrum, and Mantle networks.
The partnership between Ondo and LayerZero will be extended beyond the three networks that were initially supported.
The tokenized real-world asset is also accessible on Solana, Sui, and Aptos, according to data from rwa.xyz.
According to rwa.xyz, Ondo now offers 11 RWA products, increasing the platform’s total yield-backed tokenized U.S. Treasury value to over $600 million.
This puts Ondo ahead of rivals like Hashnote, Franklin Templeton Benji Investments, and Securitize, a tokenization partner of BlackRock.