Ondo

Token

LayerZero

Yield

Ondo US Dollar Yield

Ondo Finance, a tokenized real-world asset (RWA) protocol, has tapped LayerZero to make its flagship yieldcoin fungible across multiple blockchain networks, LayerZero told Cointelegraph on Nov. 26. 
Users can now access Ondo US Dollar Yield Token (USDY) “and its tokenized [United States] Treasurys product across multiple blockchain ecosystems without needing to mint new tokens or swap assets between chains,” Ondo said.
According to Ondo, integrating LayerZero’s Omnichain Fungible Token (OFT) standard establishes USDY as a “compelling alternative to traditional stablecoins like USD Coin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="null" target="null" text="null" title="https://cointelegraph.com/usdc-price-index">USDC</a>) and Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/tether-price-index">USDT</a>).”
The USDY yieldcoin “is now fully fungible across Ethereum, Mantle, and Arbitrum,” Ondo told Cointelegraph. It plans to add more networks soon.
<figure>
 <img alt="Ondo taps LayerZero to take USDY multichain" src="https://s3.cointelegraph.com/uploads/2024-11/019369ca-80b6-77bb-b3ca-074dbf0f8bb7" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://app.rwa.xyz/treasuries" rel="nofollow noopener" target="_blank" text="null" title="https://app.rwa.xyz/treasuries">RWA.xyz</a>
 </figcaption>
</figure>
<h1 id="em-strong-related-strong-em-a-data-ct-non-breakable-null-href-https-cointelegraph-com-news-ondo-usdy-yieldcoin-expands-arbitrum-rel-target-_self-text-null-title-https-cointelegraph-com-news-ondo-usdy-yieldcoin-expands-arbitrum-em-strong-ondo-s-usdy-yield-coin-expands-to-arbitrum-strong-em-a">Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ondo-usdy-yieldcoin-expands-arbitrum" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ondo-usdy-yieldcoin-expands-arbitrum">Ondo’s USDY yield coin expands to Arbitrum</a></h1><advertisement>
 Ondo’s USDY is a yield token designed to let users earn some 4.9% annual percentage return (APR). Each USDY token is backed by bank deposits and short-term Treasury bills, according to Ondo. 
 USDY has a total value locked (TVL) of more than $450 million and is available on eight blockchain networks, including Ethereum and Solana, <a data-ct-non-breakable="null" href="https://defillama.com/stablecoin/ondo-us-dollar-yield" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/stablecoin/ondo-us-dollar-yield">according</a> to DefiLlama. 
 Ondo also offers another tokenized treasury product, Ondo Short-Term US Government Treasurys (OUSD).
 LayerZero’s OST standard “works by burning tokens on the source chain whenever an omnichain transfer is initiated… creating a unified supply across both networks,” according to LayerZero’s website. 
 This “allows tokens to be transferred across multiple blockchains without asset wrapping, middlechains, or liquidity pools,” the company said.
 <figure>
 <img alt="Ondo taps LayerZero to take USDY multichain" src="https://s3.cointelegraph.com/uploads/2024-11/019369cd-83b9-7402-8008-c6844cf27a0a" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://defillama.com/stablecoin/ondo-us-dollar-yield" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/stablecoin/ondo-us-dollar-yield">DefiLlama</a>
 </figcaption>
 </figure>
 The total market capitalization for tokenized Treasury products has increased by more than three times in 2024, according to data<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tokenized-us-treasurys-expected-to-surpass-3b-by-end-of-2024" rel="null" target="null" text="null" title="null"> from RWA.xyz</a>. They collectively command a market cap of some $2.5 billion as of Nov. 26.
 Ondo is the most popular tokenized US Treasury protocol. With TVL of $650 million, Ondo leads rivals, including Securitize, Hashnote, and Franklin Templeton, according to RWA.xyz.
 Collectively, tokenized RWAs represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tokenized-rwa-30-trillion-opportunity-polygon-exec" rel="null" target="null" text="null" title="null">told Cointelegraph in an interview</a>.
 USDY is not available to US investors and cannot be transferred for 40 days.&nbsp;
 Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/crypto-voters-are-already-affecting-the-2024-presidential-election/" rel="null" target="null" text="null" title="null">Crypto voters are already disrupting the 2024 election — and it’s set to continue</a>
 <template data-name="subscription_form" data-type="defi_newsletter" label="Subscription Form: DeFi Newsletter"></template>
</advertisement>

Ondo taps LayerZero to take USDY multichain

Table of Contents

Cointelegraph

Other articles published on Nov 26, 2024

Crypto Insiders Bet on This $0.000667 Meme Token to Challenge Dogecoin and Shiba Inu in the Next ...

Crypto Fear & Greed Index Drops to 79, Remains in ‘Extreme Greed’ Zone

Nodepay: Revolutionizing Online Payment Solutions

Russia’s central banker behind CBDC steps down

Router Chain integrates Sui network for cross-chain experience

Kraken winds down NFT marketplace

Join our free newsletter for daily crypto updates!