CDS Crypto News Aptos Foundation Launches Ondo US Dollar Yield (USDY) on Aptos Blockchain
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Aptos Foundation Launches Ondo US Dollar Yield (USDY) on Aptos Blockchain

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Aptos Foundation Launches Ondo US Dollar Yield (USDY) on Aptos Blockchain

Aptos Foundation Launches USDY: New Yield-Bearing Stablecoin on Aptos Blockchain

Aptos Foundation has announced the launch of Ondo Finance’s new yield-bearing stablecoin, the Ondo US Dollar Yield (USDY), on the Aptos blockchain. This move marks a significant addition to the suite of decentralized financial instruments available on Aptos.

USDY: A Stablecoin Backed by US Treasurys

According to the Aptos Foundation, USDY will be available to non-US residents using the Aptos blockchain. This digital asset is backed by United States Treasurys, aiming to provide stability and yield. However, it’s important to note that USDY has not yet been registered under the Securities Act in the United States.

Benefits of Stablecoins in Financial Inclusion

In its announcement, the Aptos Foundation highlighted the advantages of stablecoins in reaching underserved communities and democratizing access to financial services. Stablecoins like USDY play a crucial role in providing stable and reliable financial instruments that can help bridge gaps in traditional financial systems.

Stablecoin Issuers: Major Buyers of US Government Debt

Interestingly, stablecoin issuers are becoming significant purchasers of US government debt. Tether, known for its stablecoin Tether (USDT), supports its digital currency with US dollar reserves and US Treasury bills. As of 2023, Tether disclosed holding $72.5 billion in US Treasury bills. This trend reflects the growing influence of stablecoins on the US dollar and its financial markets.

Aptos Foundation Launches Ondo US Dollar Yield (USDY) on Aptos Blockchain

Former US House Speaker Paul Ryan has recognized the potential impact of dollar-pegged stablecoins on US dollar demand, particularly amidst global efforts to reduce reliance on the dollar in international trade. This could potentially extend the dominance of the US dollar in global finance.

Binance.US Gains Approval for US Treasury Investments

In July, Binance.US received regulatory approval to invest customer funds in US Treasury bills. The arrangement requires Binance.US to use a third-party custodian for the funds and prohibits reinvesting customer funds into Binance.US or related business operations.

Market Potential: $3 Billion by End of 2024

Research strategist Tom Wan projects that the tokenized US Treasury market could reach $3 billion by the end of 2024. Wan cites the introduction of tokenized Treasury offerings by BlackRock and Securitize as key factors driving this growth. BlackRock’s Institutional Digital Liquidity Fund (BUIDL) is already recognized as the world’s largest tokenized Treasury investment fund, reflecting the increasing interest in tokenized US debt instruments.

Aptos Foundation Launches Ondo US Dollar Yield (USDY) on Aptos Blockchain
Source: Bluechip

FAQ

What is USDY?

USDY is a new yield-bearing stablecoin launched by Ondo Finance on the Aptos blockchain. It is backed by US Treasury securities and aims to offer a stable digital asset for users outside the US.

Why is USDY significant?

USDY represents a notable advancement in the stablecoin market as it combines the stability of US Treasury securities with the benefits of blockchain technology. This stablecoin aims to enhance financial inclusion and provide a reliable digital asset for global users.

For more up-to-date crypto news, you can follow Crypto Data Space.

Aptos Foundation Launches Ondo US Dollar Yield (USDY) on Aptos Blockchain

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