Ondo Finance’s USDY Integration Brings Yield-Bearing Assets to Stellar for the First Time

TLDR:

• USDY launches on Stellar, merging low-cost transactions with yield-bearing tokenized U.S. Treasuries for crypto users worldwide
• Ondo Finance extends its $650M+ TVL yieldcoin to Stellar, boosting cross-border payment and treasury management use cases
• The integration allows global users to hold yield-bearing assets on Stellar for the first time with 5.3% APY access
• Stellar’s fast payment network combines with USDY to power everyday savings, remittances, and DeFi collateral solutions

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Stellar has a new addition that could change how its users move and grow money. Ondo Finance confirmed that its yield-bearing stablecoin USDY is now available on the network. The launch means crypto users can now earn yield from tokenized U.S. 

Treasuries, while still transacting at Stellar’s fast and low-cost speeds. The integration is aimed at payments, remittances, and treasury management worldwide. This move expands one of the most widely used yield coins to an entirely new blockchain audience.

According to a blog post from Ondo Finance, the expansion lets both individual and institutional users tap into permissionless access to yield. The firm said this marks the first time Stellar balances can generate yield while remaining liquid. 

Stellar, known for its cross-border payments focus, now offers users a way to turn idle balances into productive assets. The combination of speed and yield could attract new users to the ecosystem.

Crypto Users Gain New USDY Option

Ondo Finance reported that USDY has already attracted over $650M in total value locked across nine blockchains. With the Stellar launch, that number could grow as the network opens doors to global users. 

The firm shared that USDY currently provides around 5.3% APY, with protections designed for institutional-grade investors. This creates a middle ground between stablecoins and higher-risk DeFi yield products.

The Stellar Development Foundation said that adding USDY aligns with its mission to make payments faster and more accessible. CEO Denelle Dixon commented that the asset allows wallets and businesses to offer yield directly to users. 

The network aims to strengthen its role as a base layer for financial applications by pairing speed with income-generating products.

New Use Cases for Payments and DeFi

The integration could expand Stellar’s utility for payments beyond just moving money. 

Ondo Finance said users can now collateralize loans, manage onchain treasuries, and hold balances that earn yield without leaving the network. This makes Stellar competitive with other chains that already host tokenized real-world assets.

The launch also creates potential for developers to build new DeFi products using USDY as a base asset. 

By combining yield with low-cost transactions, Stellar could attract more liquidity and developer activity. This aligns with the network’s long-term goal of being a hub for real-world financial activity.

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