Ondo USDY
Ondo USD Yield, the yield-bearing tokenised dollar product distributed under Reg S to non-US investors. Combined with OUSG, Ondo's combined platform AUM crossed USD 1.4 billion by early 2026. Reg S structure makes USDY the structurally distinct non-US distribution channel that BUIDL and FOBXX have not built.
Operating details
How it actually settlesUSDY is a tokenised note backed by short-term US Treasuries and bank demand deposits, issued by Ondo's special-purpose issuer entity under Reg S. The note pays a yield through token-value accrual rather than rebasing. Distribution is to non-US investors after a 40-day Reg S restricted period, with whitelisted KYC at the wallet level. Live across Ethereum, Solana, Sui, Aptos, Mantle, Cosmos (via Noble), Arbitrum, Plume, and the XRP Ledger. Mint and redeem run through the Ondo platform with USDC and USD on-ramps.
Ondo Finance (issuer) · Morgan Stanley (T-bill custody) · Ankura Trust (transfer agent) · Coinbase Custody (institutional custody) · NAV Consulting (administrator) · Ripple (RLUSD on XRPL) · Noble (Cosmos issuer)
Combined OUSG plus USDY market cap approached USD 1.4 billion by early 2026. Ondo platform-wide TVL crossed USD 2.75 billion entering 2026. USDY supply is concentrated outside the US wallet perimeter under the Reg S distribution channel; geographic distribution of USDY holders is not consistently disclosed publicly.
Structured as a Reg S note, distributed to non-US investors after the 40-day restricted period. Backed by short-term US Treasuries and bank demand deposits with the holdings register maintained by Ankura Trust as transfer agent. Distinct from BUIDL's 3(c)(7) wrapper and from FOBXX's 1940 Act registration in that USDY is a note rather than a fund interest, distributed to a non-US investor base.
US persons are excluded under the Reg S restricted-distribution rules; Ondo's US investor channel runs through OUSG separately. Yield accrues through token-value increase rather than rebasing, which can complicate the integration into DeFi venues that assume balance-rebasing yield models. Whitelist gating limits secondary-trading depth on permissionless venues.
Recent news2 curated · awaiting ingestion
- CURATED2025-07-03CoinDeskOndo Finance, Pantera Capital to Invest $250M in Real-World Asset Projects
Ondo Catalyst commits USD 250M to RWA infrastructure and protocol equity, signalling Ondo's intent to build out the surrounding stack (custody, compliance, secondary venues) that USDY and OUSG rely on.
- CURATED2024-08-13Ondo FinanceOndo Finance Launches USDY: Tokenized Note Backed by US Treasuries
Ondo's USDY launch positioned the product as a yield-bearing tokenised dollar note for non-US investors under Reg S, structurally distinct from the OUSG private-fund product designed for US qualified purchasers.
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