KEY TAKEAWAYS
- Ondo Finance’s USDY has launched on the Stellar network, offering a yield-bearing dollar alternative backed by U.S. Treasuries.
- The integration enhances Stellar’s ecosystem by providing global investors with stablecoin yields and institutional-grade protections.
- USDY supports cross-border payments and DeFi activities, improving capital efficiency and liquidity within Stellar’s network.
- This launch is expected to boost both institutional and retail use cases, including onchain savings and treasury management.
United States Dollar Yield (USDY), the flagship yieldcoin product from Ondo Finance, has been launched on the Stellar network. This development marks a significant milestone in enhancing financial access, as it allows users on the Stellar network to access a permissionless yield-bearing dollar alternative. USDY is backed by short-term U.S. Treasuries and bank demand deposits.
The integration of USDY with Stellar combines the safety and yield of onchain Treasuries with Stellar’s global payments infrastructure. This move is expected to unlock new opportunities for individuals, businesses, and institutions worldwide. Stellar, known for its fast, affordable, and borderless payments, has been a trusted ecosystem for real-world financial use cases for over a decade.
USDY’s Role in Stellar’s Ecosystem
With over $650 million in total value locked (TVL) across nine blockchains, USDY now enables global (non-US) individual and institutional investors to leverage stablecoins with attractive yields and institutional-grade investor protections on the Stellar network. The deployment of USDY is anticipated to enhance productivity within the Stellar ecosystem, turning idle balances into active assets across various use cases.
For wealth preservation, individuals can use USDY to support their earning and savings goals while maintaining liquidity for everyday spending. This feature benefits consumers, small businesses, gig workers, and creatives by providing yield tied to the stability of a U.S. asset.
In treasury management, USDY offers yield on funds used to manage cash positions and reduces investor risk in multi-party financial transactions through 24/7 liquidity and transparency. Additionally, USDY’s daily yield accrual makes it a cost-effective collateral option for onchain lending and borrowing within Stellar’s growing DeFi ecosystem.
Enhanced Cross-Border Payments and Integration
The integration of USDY into Stellar enhances the capital efficiency of balances earmarked for cross-border payments. This development opens up new opportunities for businesses and individuals to optimize global payment workflows while maintaining liquidity. USDY is now accessible across key parts of the Stellar ecosystem, including LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet, ensuring immediate use for savings, payments, and DeFi activities.
Ian De Bode, Chief Strategy Officer at Ondo Finance, stated, “Stablecoins unlocked global access to the U.S. dollar. With USDY, we’re taking the next step by bringing U.S. Treasuries onchain in a form that combines stability, liquidity, and yield.” Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, added, “The global reach of the Stellar ecosystem combined with a yield-bearing asset like USDY levels up what is possible onchain.”
The launch of USDY on Stellar is expected to enhance both institutional and retail use cases, such as onchain savings, treasury management, cost-effective collateral in DeFi, and cross-border payments. More details about this launch can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
The launch of United States Dollar Yield (USDY) on the Stellar network by Ondo Finance is a pivotal development in enhancing financial access through a permissionless yield-bearing dollar alternative.
According to a report by FXC Intelligence, cross-border payment adoption is accelerating sharply, with a 186% increase in industry press coverage in early 2025. This aligns with USDY’s integration into Stellar, which is expected to enhance productivity and liquidity in cross-border payments.
A report from AInvest highlights that the integration of USDY into the Stellar ecosystem significantly enhances Stellar’s capabilities in both cross-border payments and DeFi. This supports the impact of USDY in attracting retail and institutional investors seeking yield, thereby boosting DeFi innovation and liquidity.
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