- USDY, the first native stablecoin that bears yield, was introduced on Cosmos by Noble and Ondo.
- USDY is a tokenized note backed by demand deposits held in US banks and short-term US Treasuries.
With the debut of Ondo US Dollar Yield (USDY) on Cosmos, the teams at Noble Blockchain and Ondo ONDO -4.19% Finance have introduced the first native yield-bearing dollar stablecoin within its ecosystem.
With this step, over 90 application-specific Cosmos blockchains will now natively support USDY, a stablecoin product and tokenized note secured by short-term US Treasuries and US bank demand deposits.
Although USDY will be distributed through the Noble blockchain, it will also be utilized by a number of other Cosmos chains and DeFi projects, including as Injective, Osmosis, Kujira, and Pyth.
USDY has a total value locked at over $300 million over numerous blockchains, making it an attractive option for yield investment for individual and institutional investors located outside of the US.
Particular traction for USDY will be seen on Injective. Injective-based derivatives exchange Helix plans to launch USDY as a collateral pair and spot asset for perpetual markets. Users will be able to trade on-chain and receive yield through USDY for the first time thanks to this. Furthermore, Hydro, an additional Injective protocol, plans to integrate USDY into its structured assets, allowing users to profit from on-chain yield. USDY’s market capitalization is more over $222 million, based on statistics from CoinGecko.
Known for serving as Circle’s USDC stablecoin’s native asset issuance network within the Cosmos ecosystem, Noble is a purpose-built blockchain. Ever since the first rollout in September 2023, Noble has issued about $243 million in locally issued USDC.
It has also been working to onboard other tokenized real-world asset projects over the course of the last year. In order to introduce USYC, an on-chain version of Hashnote’s short-duration yield fund, into the Cosmos ecosystem, for example, it previously collaborated with Hashnote.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
