Mantle and Ondo Finance Debut USDY Yield Token Supported by Real-World Assets, Rebase Version in the Works

Crypto News– Decentralized autonomous organization-led web3 ecosystem Mantle has teamed up with tokenized financial products platform Ondo Finance to launch USDY, a yield-generating token backed by real-world assets.

Mantle and Ondo Finance Debut USDY Yield Token Supported by Real-World Assets, Rebase Version in the Works

This yield-bearing token has been introduced to the Mantle Network following the launch of the Ethereum Layer 1 to Mantle Layer 2 bridge for USDY. USDY is an upgradeable Ethereum ERC-20 token and can be found on Mantle decentralized exchanges such as Agni Finance and FusionX Finance.

Ondo Finance, known for its leadership in tokenized securities with approximately 50% market share, has legally structured USDY as a tokenized bearer instrument. Users can also directly participate in USDY on Mantle through Ondo Finance’s mint and bridging mechanism. USDY offers an alternative to stablecoins like Tether’s USDT and Circle’s USDC. It is a tokenized note secured by short-term U.S. treasuries and bank demand deposits, and holders receive yield generated by the underlying assets in the form of accumulating token value.

Additionally, Ondo Finance is expected to issue a rebasing counterpart called mUSD in the coming weeks. mUSD is designed to maintain a peg to $1 with interest distributed via new tokens.