Ondo Finance and the Arbitrum Foundation have announced the debut of Ondo U.S. Dollar Yield on Arbitrum.
Ondo Finance and Arbitrum announced that the tokenized note USDY was debuted on the Ethereum layer-2 scaling solution in a statement on August 27.
With a current market value of $347 million, the Ondo U.S. Dollar Yield is a yield-bearing instrument secured by short-term U.S. Treasuries. According to information from RWA.xyz, USDY is active on several blockchain networks, including Solana and Ethereum.
USDY to unlock DeFi benefits for Arbitrum users
Now that USDY has launched on Arbitrum, it is accessible on yet another significant decentralized money platform.
The main DeFi protocols on Arbitrum, Camelot and Dolomite, can now benefit from Ondo’s tokenized treasury asset, according to an announcement by the Arbitrum Foundation on August 27. Katie Wheeler, VP of partnerships at Ondo Finance:
We are thrilled to see USDY launch on Arbitrum, paving the way for some of the largest decentralized finance applications to leverage our tokenized US treasuries.”
According to Wheeler, the connection will help Arbitrum’s DeFi ecosystem grow and open up additional advantages for ARB holders.
In addition to providing non-U.S. investors on Arbitrum with an attractive annual percentage yield (APY) of 5.35%, USDY holders will also give access to institutional-grade investment protections, stablecoins, and an appealing APY.
Growing RWA ecosystem
Following ArbitrumDAO’s decision to diversify six million ARB tokens into Ondo’s tokenized note, Ondo has launched USDY on Arbitrum.
The program’s goal is to encourage the adoption of RWA on Arbitrum. The ARB invested in Ondo USDY makes up 17% of Arbitrum’s 36 billion treasury investment.
In the meantime, the overall market value has swiftly surpassed $2 billion because of growth in the RWA market and, more specifically, the tokenized treasuries area.
By market capitalization, the top providers are BlackRock, Franklin Templeton, and Ondo Finance; OpenEden, Hashnote, and Superstate are gaining ground.
