As a seasoned crypto investor with a knack for seeking out opportunities that bring tangible value, I find the recent launch of Ondo U.S. Dollar Yield (USDY) on Arbitrum incredibly intriguing. Having closely followed both Ondo Finance and Arbitrum Foundation’s growth trajectories, I can attest to their commitment towards fostering a robust DeFi ecosystem.
Ondo Finance and the Arbitrum Foundation have unveiled plans for the debut of a U.S. Dollar Earning Program on Arbitrum.
On August 27th, Ondo Finance (ONDO) and Arbitrum (ARB) made an announcement to crypto.news that they have introduced a tokenized version of the USD known as USDY, which is now available on Arbitrum’s Ethereum layer-2 scaling platform.
As a crypto investor, I’ve been keeping an eye on the Ondo U.S. Dollar Yield, a yield-generating asset backed by short-term U.S. Treasuries with a current market value of $347 million, according to data from RWA.xyz. Interestingly, this asset is now accessible not just on traditional platforms but also on blockchain networks like Ethereum (ETH) and Solana (SOL), along with others.
USDY to unlock DeFi benefits for Arbitrum users
As a researcher, I’m thrilled to share that I’ve successfully deployed USDY on the Arbitrum platform, expanding its presence within the decentralized finance (DeFi) landscape. In an official announcement dated August 27th, the Arbitrum Foundation revealed that Ondo’s tokenized treasuries asset now provides real-world investment opportunities for users, seamlessly integrating with Arbitrum’s leading DeFi protocols, Camelot and Dolomite.
“It’s exciting to announce that USDY is now live on Arbitrum! This means that major decentralized finance platforms can now utilize our tokenized U.S. treasuries.”
Katie Wheeler, VP of partnerships at Ondo Finance.
The integration is intended to enhance the decentralized finance (DeFi) network within Arbitrum, thereby providing additional advantages to ARB token holders, according to Wheeler.
Owners of USDY can receive a yearly return of 5.35%, and this digital currency will provide non-US investors on the Arbitrum network with an opportunity to capitalize on the advantages of stablecoins, appealing annual percentage yields, and safeguards typically offered to institutional investors.
Growing RWA ecosystem
As an analyst, I’m observing a strategic move by Ondo as they introduce their USDY token on the Arbitrum network. This action is in response to ArbitrumDAO’s decision to invest six million ARB tokens into Ondo’s tokenized note. The purpose of this program is to facilitate the adoption of RWA (Real World Assets) within Arbitrum, with 17% of Arbitrum’s total treasury investment, amounting to 36 billion, now allocated to Ondo USDY.
Simultaneously, the Real-World Assets (RWA) market and the tokenized treasuries sector have witnessed rapid expansion, causing the overall market value to surpass the $2 billion threshold in a short time.
Leading companies such as BlackRock, Franklin Templeton, and Ondo Finance dominate the market in terms of capitalization, whereas OpenEden, Hashnote, and Superstate are experiencing growing interest.
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2024-08-27 17:00