Ondo Finance announced a partnership with Solana-based decentralized exchange Drift Protocol, allowing its tokenized US Treasury bonds (USDY) to be used as collateral for perpetual contracts and lending. This marks a new use case in the RWA field, bringing more practicality to RWAs and increasing capital efficiency.
RWA (Real World Assets) is currently a focal point in the cryptocurrency market. On March 20 of this year, after BlackRock launched its first tokenized fund BUIDL “BlackRock USD Institutional Digital Liquidity Fund”, Ondo Finance ($ONDO) surged nearly 30% on the same day, with an increase of over 500% since the beginning of the year.
Yesterday, Ondo Finance announced a partnership with Solana-based decentralized exchange Drift Protocol to allow its tokenized US Treasury bonds (USDY) to be used as collateral for Drift Protocol’s perpetual contracts, enabling lending. This is a new use case in the RWA field, as previously tokenized US Treasury bonds could only be used for interest earning, but can now also be used for trading operations, bringing more practicality and increased capital efficiency to RWAs. It is expected that more exchanges will support this in the future. Both parties stated:
Justin Schmidt, President and COO of Ondo Finance, commented:
Both parties stated that they will continue to expand their cooperation in the future, allowing more assets to go on-chain and increasing utility for traders.
USDY is the fourth largest tokenized US Treasury bond, with a scale of over 160 million RMB. Ondo Finance’s USDY is an alternative to the US dollar stablecoin, backed by short-term US government bonds and bank deposits, with an annualized yield of 5.30% and a fee of 0.05%. Users need to wait 40 to 50 days after purchase before they can transfer it on-chain, with support for Ethereum, Mantle, Solana, Sui, and Aptos public chains.
Ondo Finance emphasized that USDY may not and should not be offered, sold, or otherwise provided to the United States or its citizens. USDY is also not registered under the US Securities Act.
Data from RWA.xyz shows that the market value of USDY has reached 165 million US dollars, making it the fourth largest tokenized US Treasury bond product, second only to BlackRock’s BUIDL, Franklin Templeton’s FOBXX, and Ondo’s own $OUSG, which is only provided to qualified investors.