Ondo's USDY launches natively in Cosmos ecosystem via Noble
Quick Take
- Noble and Ondo launched USDY, the first native yield-bearing stablecoin, on Cosmos.
- USDY is a tokenized note secured by short-term US Treasuries and US bank demand deposits.
The teams at Noble blockchain and Ondo Finance have launched Ondo US Dollar Yield (USDY) on Cosmos, marking the introduction of the first native yield-bearing dollar stablecoin in its ecosystem.
This move brings USDY, a stablecoin product and tokenized note secured by short-term US Treasuries and US bank demand deposits, natively to over 90 application-specific Cosmos blockchains.
While USDY will be rolled out via the Noble blockchain, several other Cosmos chains and DeFi projects will be leveraging USDY, including Injective, Osmosis, Kujira, and Pyth among others.
USDY allows global (non-US) individual and institutional investors to access yield and has a total value locked exceeding $300 million across multiple blockchains.
USDY will see particular adoption on Injective. Helix, a derivatives exchange based on Injective, is set to introduce USDY as a spot asset and a collateral pair for perpetual markets. This will allow users to trade on-chain while earning yield through USDY for the first time. Additionally, Hydro, another protocol on Injective, will incorporate USDY into its structured assets, enabling users to earn on-chain yield. USDY has a market cap of over $222 million, according to CoinGecko data.
Noble is a purpose-built blockchain known for being the native asset issuance network for Circle’s USDC stablecoin in the Cosmos ecosystem. There is over $243 million of natively issued USDC on Noble since the initial rollout in September 2023.
Over the past year, it has also been working to onboard various other tokenized real-world asset projects. For instance, it previously partnered with Hashnote to bring USYC — an on-chain representation of Hashnote’s short-duration yield fund — to the Cosmos ecosystem.
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