9 months ago
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Introducing U.S. bond-denominated token USDY to Sui
On the 8th, financial services company Ondo Finance announced that it will introduce USDY, backed by US Treasury bills, to its layer 1 blockchain “Sui”. It is said to be Sui's first native dollar-denominated token.
USDY will be integrated into Sui's main DeFi (decentralized finance) protocol, strengthening the Sui ecosystem as a stable and liquid investment option.
USDY is considered a type of stablecoin, but it is an RWA (real asset) type token backed by short-term U.S. government bonds and bank deposits, and holders can also earn yield.
connection: U.S. Ondo Finance issues USDY backed by U.S. bonds and bank deposits to compete with stablecoins
What is RWA?
Abbreviation for “Real World Asset.” RWA that is tokenized on the blockchain includes real assets such as real estate, artwork, trading cards, and securities such as stocks and bonds.
Virtual currency glossary
connection:Why investors are interested in real asset tokenization and what is Real World Assets (RWA)?
Significance of expanding to Sui
Nathan Allman, CEO of Ondo Finance, spoke about the significance of introducing USDY to Sui as follows:
Sui's impressive rise in the DeFi space is a realization of the potential of blockchain technology. This is also an opportunity for us to contribute to Sui's on-chain financial ecosystem.
The collaboration with Sui will expand Ondo's reach, introduce Ondo's reliable and income-generating asset USDY to a wider audience, and foster innovation and stability across the ecosystem.
Greg Siourounis, Managing Director of the Sui Foundation, added: “Sui's recent DeFi trading volume growth is already industry-leading, and Ondo's addition further strengthens that trajectory.”
Ondo Finance also launched USDY on the Ethereum (ETH) L2 “Mantle Network” in November last year.
connection: Ondo Finance launches RWA token “USDY” on Ethereum L2 “Mantle”
Sui is on the rise
Source: DeFillama
Sui is a layer 1 blockchain equipped with smart contract functionality that is characterized by high processing power.
Assets under custody (TVL) on the network have increased by approximately 1000% in the past four months. According to DeFillama, at the time of writing the article, TVL was ranked 9th in the blockchain rankings, reaching approximately 74 billion yen (approximately $500 million).
It has been pointed out that the reason for this growth is the provision of incentives to early users and expectations for airdrops. Various applications such as liquid staking, decentralized exchanges (DEX), and lending protocols are also expanding.
connection: Sui entered the DeFi TVL top 10, what is the background behind the breakthrough?
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