Ondo’s USDY on Stellar XLM: Yield-Bearing Stablecoin Backed by Tokenized U.S. Treasuries Unlocks DeFi Potential
Ondo’s USDY Launch: A Game-Changer for Stellar
Ondo Finance has successfully launched USDY, its innovative yield-bearing stablecoin, on the Stellar ($XLM) blockchain, marking a transformative step for tokenized real-world assets (RWAs). Announced on September 17, 2025, USDY is backed by short-term U.S. Treasuries and bank deposits, ensuring dollar-pegged stability while generating passive yield. For instance, this integration offers seamless access to high-quality assets on Stellar’s ultra-fast, low-cost network. Consequently, for those searching “USDY on Stellar XLM,” this launch blends traditional finance’s security with blockchain’s efficiency, creating a compelling opportunity for investors.
Empowering Versatile Financial Use Cases
Moreover, USDY transcends traditional stablecoins by enabling a range of financial activities. Specifically, on Stellar, it supports lending and borrowing in DeFi protocols, allowing users to leverage it as cost-effective collateral without idle capital. Additionally, for cash management, USDY balances accrue yield from Treasuries, transforming holdings into income-generating assets. In terms of payments, USDY facilitates cross-border transfers on Stellar, settling in seconds for minimal fees while still earning returns. Therefore, searches like “Ondo USDY yield on Stellar payments” highlight its potential to disrupt the $61B remittances market, streamlining global transactions.
Seamless Integration Strengthens Stellar’s DeFi Ecosystem
Furthermore, USDY integrates effortlessly with Stellar’s ecosystem, including apps like Lumexo, LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet, making it accessible to both retail and institutional users. Unlike other stablecoins, its RWA backing distinguishes it from competitors like Etherfuse’s Stablebonds, positioning USDY as a liquidity powerhouse in DeFi. As Denelle Dixon, CEO of the Stellar Development Foundation, stated, “The global reach of the Stellar ecosystem combined with a yield-bearing asset like USDY levels up what is possible onchain.” Thus, for queries like “tokenized Treasuries on XLM,” USDY enhances Stellar’s reputation for compliance and interoperability.
Boosting Liquidity and $XLM Market Momentum
Equally important, USDY’s launch could significantly drive $XLM demand by increasing on-chain volume and liquidity for DeFi and payments. For example, investors searching “XLM price after USDY launch” may anticipate upside. Moreover, in the $15B+ tokenized asset market, USDY’s yield focus appeals to sustainable portfolios, intensifying blockchain competition. As Ondo CSO Ian De Bode noted, “With USDY, we’re bringing U.S. Treasuries onchain in a form that combines stability, liquidity, and yield.” Hence, expect robust adoption in treasury management.
A Tokenized Future with USDY and Stellar
Ultimately, Ondo’s USDY heralds a new era where yield is embedded in everyday finance, positioning Stellar as a hub for productive assets. For $XLM holders, this validates Stellar’s vision; meanwhile, newcomers can access USDY via platforms like Lumexo for seamless trading. As Q4 2025 brings more RWA integrations, Stellar’s role in bridging institutions and global users grows stronger. In short, USDY isn’t just a stablecoin, it’s a catalyst for onchain prosperity.