STBL.com, the next-generation stablecoin protocol, has announced a strategic partnership with Ondo Finance, a blockchain technology company, as per details shared with Finbold.
The collaboration designates USDY, Ondo’s tokenized yield-bearing asset backed by short-term U.S. Treasuries and bank deposits, as primary collateral within STBL’s reserve structure, unlocking up to $50 million in USST minting capacity.
Partnership brings tokenized T-bill yield into STBL’s reserve model
USDY complements STBL’s architecture as a fully collateralized instrument that delivers dollar-denominated yield to eligible holders while preserving investor protections, including first-priority security interest over the underlying assets.
Reeve Collins, Co-Founder and Chairman of STBL, added:
Ian De Bode, Chief Strategy Officer at Ondo Finance, further commented:
STBL’s reserve and compliance framework
Under STBL’s reserve and compliance framework, the protocol separates principal and yield into two distinct instruments. USST functions as a fully backed, non-interest-bearing stablecoin for payments and on-chain collateral, while YLD carries the rights to yield from the underlying assets and is accessible only to eligible holders.
This structure enables compliant yield distribution while maintaining USST’s role as a permissionless medium of exchange. Governance is fully on-chain, with parameters such as collateral haircuts, redemption spreads, and fee routing adjustable as market conditions evolve.
To further streamline participation, STBL indexes issuer and custodian allowlists directly, removing redundant KYC steps and ensuring yield distribution remains within defined regulatory boundaries. Dynamic mint-and-burn mechanics are designed to preserve the peg without reliance on a centralized issuer.
In practice, the model allows institutions to mint USST against Ondo’s USDY, retain yield exposure via YLD, and unlock liquidity while maintaining regulatory clarity. Together, STBL and Ondo aim to demonstrate how yield-bearing tokenized assets can serve as compliant, transparent collateral for stablecoins across both DeFi and institutional markets.
Featured image via Shutterstock.
Source: https://finbold.com/stbl-selects-ondos-usdy-as-primary-collateral-to-back-50m-in-stablecoin-issuance/
