Ondo Finance Launches USDY Tokenized US Treasury Fund on Sei Network

Ondo Finance has launched USDY, a tokenized US Treasury fund, on the Sei Network. This move marks a significant advancement in the decentralized finance (DeFi) space, as it is the first tokenized Treasury product on a layer-1 blockchain. USDY offers an approximate annual percentage yield (APY) of 4.25%, backed by short-term U.S. Treasuries and bank deposits, combining the stability of a stablecoin with high yield.

This launch is expected to boost Sei Network's liquidity and total value locked, attracting more institutional and retail participants. The collaboration between Ondo Finance and Sei Network enhances access to real-world assets, supported by Sei's rapid transaction capabilities. This initiative is poised to revolutionize onchain applications, driving industry growth and investor interest.

Justin Barlow, Executive Director of the Sei Development Foundation, expressed enthusiasm about the launch, stating that USDY represents a high-quality, composable yield primitive that will unlock new possibilities for developers building the next generation of onchain applications. The Sei Network's infrastructure, with near-instant finality and parallelized execution, is uniquely suited for institutional-grade financial products.

Ondo Finance's innovative approach has garnered attention from financial markets, highlighting USDY's potential legal and technological impacts. Historical precedents suggest significant boosts to network activity and financial product adoption, emphasizing long-term transformational potentials. The focus on regulatory compliance differentiates USDY from less transparent financial mechanisms, setting new standards in digital asset offerings on the blockchain.

Ondo Finance manages 1.4 billion in assets, making it one of the largest real-world asset projects by total value locked. The startup has recently acquired blockchain developer Strangelove and agreed to purchase Oasis Pro for broker-dealer licensing, underscoring its commitment to expanding its capabilities and integrating more deeply with the financial ecosystem.

The Sei Network, known for its 400-millisecond block finality through parallel order execution, has also seen significant developments. The network raised 30 million in Series A funding in 2023 and has received a strategic investment from Circle, which is bridging its USDC stablecoin to the network. This collaboration further enhances the credibility and utility of the Sei Network, positioning it as a robust platform for high-performance, capital-efficient transactions.

The launch of USDY on the Sei Network is expected to attract institutional investors seeking stable, high-yield assets within the DeFi space. This integration is a historic milestone for real-world assets (RWA) on the blockchain, providing institutions with access to tokenized treasuries on an ultra-fast layer-1 chain. The collaboration between the Sei Development Foundation and Ondo Finance ensures a smooth integration of USDY into the Sei ecosystem, bringing institutional-grade on-chain yield to the network.