- Aptos announced the launch of Ondo US Dollar Yield (USDY) on its Apros blockchain
- USDY is backed by the US Treasury and is available to non-US residents
- Stablecoins are taking on more importance in the context of record US government debt
- Stablecoins could potentially expand USD dominance in international trade settlements
The Aptos Foundation announced the introduction of Ondo Finance’s yield-bearing stablecoin, Ondo US Dollar Yield (USDY), on the Aptos blockchain.
What Is the State of USDY Right Now?
USDY will be backed by the U.S. Treasury and available to non-US residents through the Aptos network.
However, USDY has yet to register under the Securities Act in the U.S.
What Are the Goals of USDY?
From the directly stated goals, we hear of improving financial inclusion and serving underserved communities. However, this is very similar to the broader pattern of stablecoin issuers and other crypto firms becoming significant buyers of U.S. government debt.
Previously, Tether, the issuer of the USDT stablecoin, reported holding $72.5 billion in U.S. Treasury bills in 2023. Amid current political instability and economic doubts, similar launches are finding demand.
Binance US has received regulatory approval to invest U.S. customer funds in Treasury bills, which you can read about in our other article.
We’re also hearing statements that point to this as a strategy, such as former U.S. lawmaker Paul Ryan. He cited the potential of stablecoins to maintain and enhance the dominance of the U.S. dollar amid efforts to reduce reliance on it in global trade and the possibility of extending the dollar’s importance for decades.
Conclusions
Seemingly, along with Bitcoin’s rapid adaptation, cryptocurrencies are beginning to take on more space and are becoming not only a bridge between the centralized financial system and the Web3 but also its hope for greater sustainability.
