KEY TAKEAWAYS
- Ondo Finance launches USDY on TruBit, expanding access to tokenized US Treasuries in Latin America.
- USDY offers a 4.25% APY, combining stablecoin convenience with traditional finance yields.
- The integration aims to enhance financial inclusion for Latin American investors with limited access to traditional institutions.
Ondo Finance has announced the launch of its Ondo US Dollar Yield (USDY) on TruBit, a prominent stablecoin-powered cross-border payment platform in Latin America. This development marks the introduction of the first tokenized US Treasuries yieldcoin to TruBit’s extensive customer base across Mexico, Argentina, Brazil, Colombia, Chile, and Peru.
The debut of USDY on TruBit represents a significant milestone in Ondo’s expansion into the Latin American market. The initiative aligns with Ondo’s mission to democratize access to institutional-grade financial products and services.
USDY, which boasts over $630 million in total value locked (TVL) across multiple blockchains, currently offers a 4.25% annual percentage yield (APY), updated monthly. It enables global (non-US) individual and institutional investors to benefit from the utility of stablecoins combined with the yield and protections associated with traditional finance.
Features and Accessibility of USDY
USDY is distinguished as the world’s first tokenized note secured by a bankruptcy-remote portfolio of US Treasuries. It is designed to be accessible to non-US investors, combining the convenience of stablecoins with high-quality, US dollar-denominated yield.
Key features of USDY include its broad accessibility, allowing it to trade globally in secondary markets to non-US investors. It is yield-bearing, accruing a variable interest rate adjusted monthly by the issuer, with yield accruing in the form of a redemption value that increases over time.
Additionally, USDY offers daily liquidity, enabling non-US investors to mint and redeem the token on a daily basis. It is secured by a portfolio of short-term US Treasuries under control agreements and is designed for compliance, issued under a continuous Regulation S offering to offshore investors with best practices in KYC/AML/CFT procedures.
Impact on Latin American Investors
The integration of USDY on TruBit provides customers across Latin America, who may have limited access to traditional investment institutions, the opportunity to gain exposure to yields collateralized by US Treasuries. This development is expected to enhance financial inclusion in the region by offering a new avenue for investment.
Ondo Finance’s mission is to accelerate the transition to an open economy by building platforms, assets, and infrastructure that bring financial markets onchain. More details about this launch can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
The launch of Ondo USDY on TruBit marks a pivotal step in expanding access to tokenized US Treasuries in Latin America, aiming to enhance financial inclusion by providing a new avenue for investment in the region.
Recent industry reports indicate a robust increase in stablecoin adoption throughout Latin America. This rise is attributed to economic instability, high inflation, and currency devaluation, which have driven the demand for stablecoins as a safe haven. The integration of USDY aligns with this trend by providing Latin American investors with exposure to US dollar-denominated yields, enhancing financial stability and inclusion.
As per insights from Hashdex, the rise of tokenized securities is underscored by the integration of public blockchain platforms, which enhance the utility of tokenized notes like USDY. This supports the impact of USDY’s launch on TruBit, as it leverages blockchain technology to offer flexible and accessible financial products to a broader audience.
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