Ondo US Dollar Yield

USDY·1.11

-0.59%

Ondo US Dollar Yield (USDY) - Complete Fundamental Analysis

By CoinStats AI

29 Jan, 2026 23:00

What is Ondo US Dollar Yield (USDY) crypto?

Core Definition and Technology

Ondo US Dollar Yield (USDY) is a tokenized note secured by short-term US Treasuries and bank demand deposits, designed to combine the accessibility of a stablecoin with high-quality, US dollar-denominated yield and is accessible to non-US individual and institutional investors. USDY operates on the Ethereum platform as an ERC-20 token.

USDY is not classified as a traditional stablecoin; instead, it is a tokenized secured note. USDY is a tokenized note formerly issued by Ondo USDY LLC, which as of December 15, 2025 has been folded into the Ondo Global Markets umbrella, and depending on the issuance date, USDY may be secured by either short-term US Treasuries, shares of iShares Short Treasury Bond ETF, or bank demand deposits.

Blockchain Architecture and Technical Implementation

Each USDY token is backed by short-term U.S. Treasury securities and demand deposits held by qualified custodians, the yield generated from these underlying assets automatically accrues to the token value over time, blockchain technology makes these traditional financial assets accessible to crypto investors without requiring access to traditional brokerage accounts, and USDY can be redeemed for the underlying value of the Treasuries and deposits it represents, providing liquidity and ensuring its value remains tied to real-world assets.

USDY accrues yield daily, which means holders can earn yield everyday whether staking it, borrowing or lending it, pledging it as collateral, or just holding it within a wallet, and because USDY accrues yield daily, the price of USDY increases over time.

Token Structure and Variants

USDY comes in two versions: an "accumulating" version (USDY) whose per-token price increases as yield accrues, and a "rebasing" version (rUSDY) whose price remains at US$1.00, and whereas the price of USDY tokens increases as the value of the underlying assets increase, with rUSDY you simply receive more rUSDY in your wallet; in effect the yield on the underlying assets accrues in the form of additional rUSDY tokens.

Primary Use Cases and Applications

One of the primary real-world applications of USDY is in building the next generation of financial infrastructure, by leveraging blockchain technology, USDY aims to improve market efficiency, transparency, and accessibility, which can be particularly beneficial for individuals and institutions seeking more efficient ways to manage and grow their financial assets.

In the decentralized finance (DeFi) space, USDY is highly adaptable, it can be utilized within protocols such as Aave and Compound for lending and borrowing, and it is available for trading on decentralized exchanges like Uniswap, 1inch and Camelot, which integration expands its utility across a variety of DeFi platforms, enhancing liquidity and accessibility.

USDY is available in over 100 countries and supported by the most widely-used blockchains and DeFi projects globally, including Solana, Ethereum, Aptos, Sui, Mantle, Mantra, and Noble.

Founding Team and Project History

Ondo US Dollar Yield emerges from the innovative minds of Nathan Allman and Ian De Bode, Nathan Allman, the CEO and founder of Ondo Finance, brings a wealth of experience in financial technology and blockchain, his leadership and vision have been pivotal in shaping the strategic direction of Ondo Finance and the creation of USDY, and Ian De Bode, a key team member, complements this with his expertise, contributing significantly to the project's development and operational execution.

Ondo Finance, led by CEO and founder Nathan Allman, launched the Ondo US Dollar Yield (USDY) token in August 2023.

Tokenomics and Supply Mechanics

The supply of USDY is elastic and directly tied to demand, new tokens are minted when investors deposit funds, and tokens are burned when investors redeem them, ensuring that each USDY in circulation is fully backed by underlying assets.

Ondo US Dollar Yield has a current supply of 624,104,123.7809083 with 623,652,164.30200621 in circulation, and the current circulating supply of Ondo US Dollar Yield is 624 million.

When Ondo US Dollar Yield launched, it followed a unique distribution model different from typical cryptocurrency token launches: instead of an Initial Coin Offering (ICO) or airdrop, USDY tokens were made available through direct purchases, and investors could acquire USDY by depositing funds with Ondo Finance, which would then create new tokens backed by the corresponding amount of Treasury bills and deposits.

Consensus Mechanism and Network Security

Unlike many cryptocurrencies, Ondo US Dollar Yield (USDY) does not offer traditional staking or mining mechanisms because of its fundamentally different structure: USDY doesn't require conventional staking as seen in Proof-of-Stake blockchains.

The backing of USDY is in the form of a perfected, first-priority security interest that is held USDY's collateral agent for the benefit of token holders, USDY is also designed for bankruptcy remoteness and over-collateralized (i.e. the assets of the USDY issuer exceed its liabilities), with third-party reserve attestations published daily for transparency, and these protections help safeguard the assets during unlikely events like bankruptcy, insolvency or operational failure.

Key Partnerships and Ecosystem Integrations

USDY expanded its reach in April 2025, when it became available on multiple blockchain networks such as Arbitrum, Sui, Aptos, Mantle Network, Plume Network, and Noble, and this significant multichain compatibility sets USDY apart from many other stablecoins, providing users with unparalleled flexibility and reach.

The most popular exchange to buy and trade Ondo US Dollar Yield is Momentum, where the most active trading pair USDY/USDC has a trading volume of $90,453.17 in the last 24 hours, and other popular options include Bybit and Orca.

Competitive Advantages and Unique Value Proposition

Unlike traditional stablecoins, USDY allows holders to earn the majority of the yield from its backing assets. Stablecoins are designed to hold a stable value but don't pay yield, meaning holders lose purchasing power due to inflation on their idle balances, but USDY accrues daily yield derived from the US Treasuries that back it, providing protections against inflation and market volatility.

The yield generated by USDY is directly linked to short-term U.S. Treasury rates, providing transparency about expected returns, which contrasts with many DeFi yields that can be highly variable and sometimes unsustainable.

USDY places significant emphasis on regulatory compliance, it is specifically designed to align with securities laws, which may result in a regulatory environment that differs from other stablecoins like USDT, and this focus on compliance enhances its credibility and appeal for users who prioritize legal assurances and transparency.

Development Activity and Milestones

On March 3, 2025, USDY achieved a significant milestone by exceeding $1 billion in total value locked (TVL), demonstrating the token's growing popularity and adoption as a reliable, institutional-grade, tokenized representation of US Treasuries.

By August 2024, USDY expanded its availability to Arbitrum, allowing users in this ecosystem to benefit from its yield-generating capabilities, highlighting Ondo Finance's dedication to offering more DeFi infrastructure for USDY.

Market Position

The current CoinMarketCap ranking is #204, with a live market cap of $705,724,216 USD. The live Ondo US Dollar Yield price today is $1.12 USD with a 24-hour trading volume of $1,392,798 USD.

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Is Ondo US Dollar Yield (USDY) a good investment?

Objective Investment Analysis: Ondo US Dollar Yield (USDY)

Product Overview

USDY is a tokenized note for non-U.S. individuals and institutions secured by a portfolio of short-term U.S. Treasuries and bank demand deposits, with the assets held by a collateral agent to safeguard holders. As time progresses the price of USDY will appreciate as yield is accrued to the holders, through the interest earned from the bank account.

Fundamental Strengths

Asset Backing and Security

USDY has a total asset value of $702,916,281 with a net asset value of $1.12 and 17,569 holders. USDY is fully backed (over 100%) by assets held with trusted custodians like Morgan Stanley and StoneX. The 1:1 backing model provides direct collateral support, distinguishing USDY from traditional stablecoins.

Yield Generation

USDY offers a 7D APY of 3.68%. Simply holding USDY tokens generates returns automatically through the yield accrued from the underlying Treasury bills and deposits, replacing the need for traditional staking mechanisms. This passive income structure appeals to yield-seeking investors without requiring active participation.

Institutional-Grade Infrastructure

Ondo Finance was founded by Nathan Allman, who previously worked on Goldman Sachs' digital assets team, shaping Ondo's approach from the start by combining deep traditional finance expertise with blockchain innovation to create compliant, professionally managed products. Ondo founder and CEO Nathan Allman came from Goldman Sachs' digital assets team, the firm recently hired Goldman's former head of digital asset compliance to be its chief risk and compliance officer, and its vice president of partnerships Kate Wheeler was a former vice president at BlackRock.

Market Position in Growing RWA Sector

Tokenized U.S. Treasuries hit $10B in January 2026, growing 58% YoY, with Ondo's OUSG and USDY products as core offerings. Ondo Finance's Total Value Locked (TVL) reached a record $1.93 billion following the announcement of tokenized U.S. stock and ETF launches on Solana in early 2026.

Regulatory Compliance Focus

In March 2025, the TVL reached $1B USD triggered by compliance-first onboarding, partnership with BitGo, copper custody integrations, and smart contracts compliant with U.S. regulations. Ondo Finance has designed USDY with regulatory considerations in mind, aiming to comply with applicable securities regulations, making it potentially more accessible to institutional investors compared to many other crypto assets.

Fundamental Weaknesses

Geographic Restrictions and Limited Accessibility

American investors cannot access USDY or OUSG due to the Securities and Exchange Commission's unclear stance on tokenized securities, with Ondo addressing this by focusing on non-U.S. markets and enforcing strict KYC/AML procedures. KYC requirements limit accessibility, with OUSG only available to qualified purchasers (accredited investors with significant capital), and USDY excludes U.S. persons entirely due to Regulation S restrictions.

Distribution and Liquidity Challenges

Despite product sophistication, USDY's liquidity and trading volumes remain limited, showing weak retail engagement and an ill-defined target customer profile, underscoring distribution and channel development as Ondo's most urgent bottlenecks. While USDY and OUSG trade 24/7, they sometimes lack market depth, meaning there aren't enough buyers or sellers at certain times, which can cause pricing gaps, though Ondo's partnerships, including Sei and Solana, aim to improve liquidity.

Minimal Revenue Capture

Ondo generates revenue by earning yield from the underlying assets, distributing the majority to holders while retaining a small interest spread and charging a 20 bps redemption fee as its primary income source, with USDY distributing an annualized yield of approximately 4.2% to holders as of September 2025, translating to around $52,000 in monthly spread income. This limited revenue model raises sustainability questions.

Slow Adoption in Retail Segments

The process of issuance of USDY is only completed after 40-50 days, when investors are allowed to mint their tokens, after which investors have all usages of their tokens including transfers to anyone within eligible geographies and decentralized finance applications. This lengthy issuance process creates friction for retail adoption.

Market Position and Competitive Landscape

Market Share

Ondo positioned itself as the second-largest player in tokenized U.S. Treasuries with approximately 17% market share. The broader tokenized asset market reached approximately $33 billion by October 2025, with platforms like Ondo Global Markets leading the tokenized securities category at $320 million TVL.

Competitive Pressures

Other platforms like Goldfinch and Ripple are also building in the real-world asset space, increasing pressure on Ondo to differentiate. Ondo isn't alone in the RWA space with competitors including crypto-natives and institutions delving into the space, with the broader tokenized asset market reaching approximately $33 billion by October 2025, and the competitive landscape including various platforms offering tokenized versions of traditional assets, from real estate to commodities including Securitize, Paxos and Tether.

Adoption Metrics

User Base and Activity

USDY has 17,569 holders with 3,633 trailing 30D active addresses, 82,387 monthly transfer count, and $9,889,738 monthly transfer volume. These metrics indicate moderate but growing adoption, though absolute numbers remain relatively small compared to major DeFi protocols.

TVL Growth Trajectory

On January 17, 2025, the TVL stood at $548 million, marking the year's low point, by March 2025 it exceeded $1 billion driven by increased adoption of tokenized U.S. Treasuries, the protocol reached a new peak in June 2025 at $1.368 billion, and as of September 2025, the TVL settled at $1.641 billion, representing a compounded annual growth rate of over 200% for the year.

Revenue Model and Sustainability

Fee Structure

Ondo Finance makes money primarily through management fees on its tokenized products like USDY and OUSG, with fees typically ranging around 0.15% annually on assets under management, which funds ongoing operations, security audits, and product development, with the fee structure mirroring traditional finance models: transparent, predictable, and designed to scale with total value locked.

Revenue Distribution

The revenue model doesn't directly redistribute earnings to ONDO token holders, instead funding the DAO treasury and operational expenses, reinforcing long-term protocol health rather than short-term payouts. This structure prioritizes ecosystem development over immediate profitability.

Team Credibility and Track Record

Founder Background

Nathan Allman holds a B.A. in Economics from Brown University and an MBA from Stanford University, bringing extensive experience in asset management and structured finance, having previously worked at Prospect Capital, ChainStreet Capital, and Goldman Sachs where he focused on asset tokenization and digital asset strategy within traditional markets, and founded Ondo Finance in 2021 following his tenure at Goldman Sachs.

Institutional Partnerships

The platform gained significant momentum throughout 2024 and 2025, particularly after BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) confirmed the institutional appetite for tokenized products, with the majority of OUSG's assets invested in BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), which itself attracted over $500 million shortly after its 2024 launch.

Risk Factors

Regulatory Uncertainty

American investors cannot access USDY or OUSG due to the SEC's unclear stance on tokenized securities, jurisdictional fragmentation exists with most markets remaining inconsistent slowing cross-border adoption, and Ondo must balance fast growth in DeFi with strict regulatory compliance, as the SEC's Crypto Task Force could either support broader adoption or impose restrictions that limit future expansion.

Token Unlock Risk

On Jan 18, 2026, Ondo unlocked 1.94B ONDO tokens (≈40% of circulating supply), potentially flooding markets, which is bearish near-term due to potential selling pressure from early investors/teams, though dilution risk is partially offset by ONDO's $1.82B TVL showing real adoption.

Liquidity and Market Depth

While USDY and OUSG trade 24/7, they sometimes lack market depth, meaning there aren't enough buyers or sellers at certain times, which can cause pricing gaps.

Operational Concentration

A significant token unlock event in early 2026 poses potential selling pressure risks, and in the absence of sustainable cash flow, Ondo could become increasingly dependent on token sales to finance operations.

Bull Case Arguments

Institutional Tailwinds: Globally, financial institutions will continue to accelerate their adoption of digital asset products and services this year, building on the unprecedented surge of institutional interest that happened in 2025, with major global banks increasingly taking the plunge and offering more extensive digital asset-related services to their clients.
Regulatory Momentum: The key theme leading into 2026 is democratization of digital assets—making digital assets accessible to US persons without the fear of imminent enforcement action.
Market Expansion: WuBlockChain's review of 2025 highlighted the prominent rise of US stock tokenization, with Ondo launching over 100 tokenized U.S. stocks/ETFs.
Real-World Utility: USDY is gaining adoption, TVL is rising, and Ondo's name is consistently mentioned in the RWA conversation alongside giants like BlackRock and Circle, as one of the few projects that actually bridges traditional finance and DeFi in a way that regulators and institutions can engage with.

Bear Case Arguments

Geographic Limitations: The exclusion of U.S. retail investors significantly constrains the addressable market for USDY, limiting growth potential in the world's largest financial market.
Weak Token Economics: There's a clear separation between the strength of the protocol and the value of the ONDO token, as ONDO doesn't currently capture protocol revenue, doesn't unlock access to products, and doesn't offer staking or fee-sharing, with its role limited to governance that's currently dominated by insiders.
Execution Risk: Despite product sophistication, USDY's liquidity and trading volumes remain limited, showing weak retail engagement and an ill-defined target customer profile, underscoring distribution and channel development as Ondo's most urgent bottlenecks.
Regulatory Headwinds: Regulatory uncertainty persists despite the SEC investigation closure, with rules around tokenized securities still evolving, and future regulatory changes could impact how Ondo operates or which investors can access its products.

Risk/Reward Assessment

Risk Factors: Regulatory uncertainty, geographic restrictions limiting addressable market, liquidity constraints, token unlock dilution, and unproven distribution model for retail adoption.

Reward Factors: Exposure to high-growth RWA tokenization market, institutional-grade infrastructure with strong team pedigree, 3.68% yield on stable underlying assets, and first-mover advantage in Treasury tokenization.

The risk/reward profile appears asymmetric toward institutional investors in non-U.S. jurisdictions seeking stable yield, but presents elevated risks for retail participants due to liquidity constraints and regulatory uncertainty. The product fundamentals are strong, but market adoption remains nascent relative to the total addressable market.

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Ondo US Dollar Yield (USDY) price prediction

ONDO US DOLLAR YIELD (USDY) PRICE PREDICTION ANALYSIS

Current Market Context

USDY is trading at approximately $1.097 with a market cap of $684,141,210. The token ranks #91 by market capitalization with a circulating supply of approximately 630 million tokens and a fully diluted valuation of $1.396 billion.

Recent Price Performance:

1-hour change: -0.01%; 1-day change: +0.79%; 7-day change: +0.77%

SHORT-TERM PREDICTIONS (2025-2026)

Source	2025 Forecast	2026 Forecast
3Commas/TradingBeasts	$1.1125 avg	$1.1394 avg; High: $1.1773
BitScreener	$1.06-$1.22 range; $1.21 avg	$1.14-$1.31 range; $1.30 close
Bitget	+10.18% change; $1.18 end-year	-3.00% change; $1.14 end-year
CoinCodex	-25.09% to $0.8305 (Nov 2025)	$0.7742-$1.11 range
CryptoPredictions	$1.413 avg; High: $1.766	$1.413 avg (Jan); High: $1.768

2025 Analysis: Predictions suggest USDY will fluctuate within a range of $1.06 (minimum) to $1.22 (maximum), with an average trading price expected around $1.21. Technical analysis indicates a bullish forecast for 2025.

2026 Analysis: A trading range of $1.14 to $1.31 is anticipated, with USDY expected to close at $1.30. This reflects a positive outlook with bullish sentiment.

MEDIUM-TERM PREDICTIONS (2027-2028)

Source	2027 Forecast	2028 Forecast
3Commas/TradingBeasts	$1.1159-$1.2376 range; $1.1768 avg	—
BitScreener	$1.23-$1.50 range; $1.50 close	—
Bitget	+8.00% change; $1.23 end-year	+27.00% change; $1.57 end-year
CryptoPredictions	$1.446 avg (Jan)	$1.158 avg (Jan)

2027 Analysis: USDY price is predicted to fluctuate within a range of $1.23 (minimum) to $1.50 (maximum). The price is expected to change by +8.00%, reaching $1.23 by end-year with a cumulative ROI of +15.20%.

2028 Analysis: A +27.00% price change is expected, with USDY projected to reach $1.57 by end-year, representing a cumulative ROI of +46.31%.

LONG-TERM PREDICTIONS (2029-2030)

Source	2029 Forecast	2030 Forecast
3Commas/TradingBeasts	—	—
BitScreener	$1.79 avg	$1.39-$1.88 range; $1.86 close
Bitget	+26.00% change; $1.97 end-year	-9.00% change; $1.80 end-year
CoinCodex	—	$1.31-$2.25 range

2029 Analysis: A +26.00% price change is expected, with USDY projected to reach $1.97 by end-year, representing a cumulative ROI of +84.35%.

2030 Analysis: A trading range of $1.39 to $1.88 is anticipated, with USDY expected to close at $1.86. CoinCodex forecasts a range between $1.31 on the lower end and $2.25 on the high end, with potential gains of 102.46%.

ALGORITHMIC & AI PREDICTION AGGREGATIONS

CoinCodex Algorithm: Predictions are calculated using historical USDY price datasets accounting for past volatility and market movements, incorporating the cyclical nature of Bitcoin halvings which introduce supply-side pressure every 4 years.

BitScreener Statistical Analysis: Uses statistical methods to predict USDY price from 2025 to 2050.

Bitget Forecast Model: In 2025, USDY price is expected to change by +10.18%, with end-year projection of $1.18 and cumulative ROI of +9.97%.

EXTENDED LONG-TERM OUTLOOK (2031-2050)

For 2030, USDY is expected to fluctuate between $1.39 and $1.88. In 2040, predictions suggest a peak price of $3.41 with a potential minimum of $2.17. For 2050, projected minimum and maximum prices are approximately $2.82 and $5.19 respectively.

KEY PRICE CATALYSTS & POTENTIAL TRIGGERS

Positive Catalysts:

Institutional adoption of real-world asset (RWA) tokenization
Regulatory clarity on stablecoin yields
Integration with major DeFi protocols
Expansion of Ondo Finance's product ecosystem
Increased demand for yield-bearing stablecoins

Negative Catalysts:

Regulatory crackdowns on yield-bearing stablecoins
Macroeconomic shifts affecting interest rates
Competition from traditional finance yield products
Smart contract vulnerabilities or security breaches
Market-wide cryptocurrency downturns

FACTORS THAT COULD INVALIDATE PREDICTIONS

Regulatory Changes: Unexpected government restrictions on stablecoin yields or tokenized securities could significantly impact USDY's value proposition.
Interest Rate Environment: Predictions assume relatively stable or gradually changing interest rates. Dramatic shifts in monetary policy could render forecasts obsolete.
Market Adoption: Predictions assume continued growth in RWA adoption. Slower-than-expected institutional participation would pressure prices downward.
Competitive Landscape: Emergence of superior competing products or protocols could reduce USDY's market share.
Technological Risk: Smart contract exploits or protocol failures could undermine investor confidence.
Macroeconomic Shocks: Systemic financial crises or geopolitical events could trigger broader cryptocurrency market declines.
Prediction Model Limitations: Most forecasts rely on historical price patterns and technical indicators, which may not account for unprecedented market conditions or paradigm shifts in the crypto ecosystem.

PREDICTION RELIABILITY ASSESSMENT

Current sentiment is bullish while the Fear & Greed Index shows 34 (Fear), with USDY recording 13/30 (43%) green days and 0.37% price volatility over the last 30 days.

The wide divergence between predictions (ranging from $0.83 to $2.25 by 2030) reflects significant uncertainty. Conservative estimates cluster around $1.10-$1.30 through 2026, while more optimistic forecasts suggest potential appreciation to $1.50-$2.00+ by 2028-2030.

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How high can Ondo US Dollar Yield (USDY) go?

Maximum Price Potential Analysis: Ondo US Dollar Yield (USDY)

Current Market Position

USDY holds a market cap of approximately $705.7 million USD, with a circulating supply of 630.8 million coins. The token currently trades at approximately $1.11 USD, maintaining a 1:1 peg to the US dollar through collateralization and smart contract mechanisms.

Fundamental Nature and Design Constraints

USDY's price potential analysis requires understanding its core function. USDY is a tokenized note for non-U.S. individuals and institutions, secured by a portfolio of short-term U.S. Treasuries and bank demand deposits. Unlike speculative cryptocurrencies, USDY maintains a 1:1 peg to the US dollar, which creates a structural ceiling on price appreciation.

The token's design as a yield-bearing stablecoin fundamentally differs from traditional cryptocurrencies. Unlike traditional stablecoins, USDY allows holders to earn the majority of the yield from its backing assets. As of September 2025, USDY distributed an annualized yield of approximately 4.2% to holders.

Market Cap Comparison Analysis

The stablecoin market provides relevant benchmarks for USDY's potential scale. The stablecoins market cap today is $314 billion, with Tether's USDT commanding about 60% of the overall stablecoin market with a market capitalization of $175 billion. Circle's USDC holds approximately 25% of the overall stablecoin market cap at $73.4 billion.

USDY's current $705.7 million market cap represents approximately 0.22% of the total stablecoin market and 0.4% of USDC's size. This positioning reveals substantial room for growth within the existing stablecoin ecosystem.

Supply Dynamics and Adoption Metrics

As of late 2025, Ondo's tokenized assets surpassed $1.8 billion in total value locked, demonstrating real institutional adoption. Tokenized U.S. Treasuries hit $10 billion in January 2026, growing 58% year-over-year, indicating accelerating institutional interest in the broader RWA sector.

However, adoption constraints exist. USDY's channel penetration remains limited, with primary listings on Bybit and Orca, while secondary market liquidity remains relatively weak with daily trading volumes fluctuating between $300,000 and $1 million across CEX and DEX platforms.

Total Addressable Market Analysis

The TAM for USDY extends beyond traditional stablecoin use cases. The Stellar network boasts a global ecosystem of interoperable wallets, exchanges, fintechs, and banking partners that will enable USDY to achieve global distribution across 180 countries worldwide. USDY went live on the Stellar network in September 2025, providing global users with a yield-bearing stablecoin backed by U.S. Treasuries and bank deposits.

The institutional market represents a significant TAM component. USDY provides non-U.S. individuals and institutions with an easily accessible, compliant, yield-bearing stablecoin that can be used in treasury management, collateralization, and enhanced cross-border payments.

Growth Catalysts and Network Effects

Ondo Finance completed its acquisition of Oasis Pro, an SEC-registered broker-dealer, ATS, and transfer agent, to expand its tokenized securities offerings and build compliant U.S. markets for tokenized assets. This regulatory infrastructure development could accelerate institutional adoption.

A partnership unlocked up to $50 million in USST minting capacity, backed by Ondo's USDY, a tokenized yieldcoin secured by short-term U.S. Treasuries and bank demand deposits, demonstrating USDY's utility as collateral for other financial products.

Limiting Factors and Realistic Constraints

Several structural constraints bound USDY's price potential:

Peg Maintenance: USDY maintains a 1:1 peg to the US dollar through collateralization and smart contract mechanisms, creating a hard ceiling at $1.00 for normal market conditions.
Regulatory Restrictions: USDY is accessible to non-US individual and institutional investors and is transferable on-chain 40-50 days after purchase, limiting accessibility and creating friction in adoption.
Distribution Challenges: Even established issuers such as Circle incur substantial costs to secure listings, integrations, and liquidity partnerships; in Ondo's case, a limited sales force and constrained marketing presence represent structural bottlenecks that hinder USDY's scalability.

Price Potential Scenarios

Conservative Scenario: USDY maintains its $1.00-$1.12 trading range with modest adoption growth. Market cap grows to $1.5-2.0 billion through institutional adoption in treasury management and cross-border payments. Price remains pegged near $1.00 with yield accrual as the primary return mechanism.

Base Scenario: USDY achieves 5-10% penetration of the institutional stablecoin market as regulatory frameworks clarify and multi-chain deployment expands. Market cap reaches $5-8 billion as adoption accelerates across Stellar, Solana, and Ethereum ecosystems. Price maintains $1.00-$1.15 range with periodic trading premiums during high demand periods.

Optimistic Scenario: USDY captures significant share of the non-U.S. institutional market for yield-bearing stablecoins, reaching $15-25 billion market cap. This would represent 5-8% of the total stablecoin market. Price could trade at $1.10-$1.25 during periods of high institutional demand, though structural peg mechanisms would constrain sustained appreciation above $1.00.

Realistic Ceiling Analysis

The fundamental constraint on USDY's price appreciation stems from its design as a pegged stablecoin. Unlike speculative assets, USDY's value derives from its backing assets and yield generation rather than market sentiment. USDY offers approximately 3.69% to non-U.S. investors, meaning the primary return mechanism is yield accrual rather than price appreciation.

Price appreciation scenarios would require either: (1) temporary trading premiums during liquidity constraints, (2) yield reinvestment creating effective price increases through rebasing mechanisms, or (3) market inefficiencies during periods of high institutional demand. Sustained price appreciation significantly above $1.00 would contradict the token's core design principle of maintaining dollar parity.

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How to buy Ondo US Dollar Yield (USDY)?

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Comprehensive Guide to Purchasing Ondo US Dollar Yield (USDY)

Overview of USDY and Purchase Options

Ondo US Dollar Yield (USDY) is a tokenized note secured by either short-term US Treasuries, shares of iShares Short Treasury Bond ETF, or bank demand deposits, accessible to qualifying non-US individual and institutional investors and designed to combine the accessibility of a stablecoin with high-quality, US dollar-denominated yield.

USDY can be acquired through two primary methods:

Centralized Exchanges (CEX) - Traditional crypto exchanges with order books and fiat on-ramps
Decentralized Exchanges (DEX) - Blockchain-based protocols requiring a connected wallet

Where to Buy USDY: Exchange Comparison

Centralized Exchanges

Exchange	Trading Pairs	Fiat Support	Minimum Order	Notes
Bybit	USDT/USDY	Yes (card, bank transfer)	Varies	Highest liquidity; primary CEX for USDY
Bitget	USDT/USDY	Yes (card, bank transfer)	$5 minimum	Supports spot trading and P2P
Momentum	USDC/USDY	Limited	Varies	Highest 24-hour trading volume
OKX	Multiple pairs	Yes (varies by region)	Varies	Supports DEX trading via OKX Wallet

Decentralized Exchanges (DEX)

Popular DEX platforms include Uniswap, SushiSwap, PancakeSwap, etc., depending on the blockchain network hosting USDY.

DEX	Network	Wallet Required	Trading Pairs
Uniswap	Ethereum	MetaMask, others	ETH/USDY, USDC/USDY
Orca	Solana	Phantom, others	SOL/USDY, USDC/USDY
PancakeSwap	BNB Chain	Trust Wallet, others	BNB/USDY, USDT/USDY

Step-by-Step Purchase Guide: Bybit (Centralized Exchange)

The top spot exchange by buy/sell volume for the last 24h is Bybit with usdt trading pair, with 60,439.99 USDY exchanged during this period.

Method 1: Direct Purchase with Fiat

Step 1: Create and Verify Your Account

Visit www.bybit.com
Click "Sign Up" in the top right corner
Select how you want to create your account using Email, Phone Number, or use Google or Apple quick login for easier signup without entering all details.
Complete email or phone verification
Access the identity verification page, select your country, upload your ID documents, and submit your selfie. You will receive a notification once your identity has been successfully verified.

Step 2: Add Payment Method

Navigate to the "Buy" section
For Visa or Mastercard, select Credit/Debit card, then click Add New Card under the "Buy" tab.
Enter card details and complete verification

Step 3: Purchase USDY

Select USDT as the currency to purchase
Enter the amount (minimum $5)
Complete the transaction
USDT will appear in your Bybit wallet

Step 4: Exchange USDT to USDY

Go to the Spot Trading section
Search for USDT/USDY trading pair
Enter the amount of USDT to exchange
Execute the trade
USDY will be credited to your account

Method 2: Purchase via Existing Cryptocurrency

Transfer BTC, ETH, or other supported crypto to your Bybit wallet
Navigate to Spot Trading
Select the appropriate trading pair (BTC/USDY or ETH/USDY)
Execute the trade at market or limit price

Step-by-Step Purchase Guide: Uniswap (Decentralized Exchange)

You can purchase USDY on decentralized exchanges (DEX). Simply connect your crypto wallet to a DEX, choose the USDY trading pair, and complete the ordering process.

Step 1: Set Up a Web3 Wallet

Install MetaMask, Trust Wallet, or compatible Web3 wallet
Create a new wallet or import existing one
Note down your mnemonic phrase or private key during wallet creation, as the loss of this information will result in permanent loss of the digital assets stored in the wallet.
Ensure the wallet is configured for Ethereum network

Step 2: Fund Your Wallet

Transfer ETH or USDC to your wallet address
Ensure sufficient balance for USDY purchase plus gas fees
Wait for transaction confirmation

Step 3: Connect Wallet to Uniswap

Visit app.uniswap.org
Click "Connect Wallet"
Select your wallet type (MetaMask, etc.)
Approve the connection request in your wallet

Step 4: Execute the Swap

Locate the USDY trading pair on the DEX platform (DEXs typically list tokens in pairs, such as USDY/ETH, USDY/USDT, etc.). Ensure your wallet has enough cryptocurrency to pay for the desired amount of USDY you want to purchase.
Select ETH or USDC as the "From" token
Select USDY as the "To" token
Enter the amount to swap
Review the exchange rate and fees
Click "Swap" and confirm in your wallet
After the transaction is completed, USDY will be automatically stored in your blockchain network wallet address.

Recommended Wallets for Storing USDY

Hot Wallets (Online, Convenient)

Wallet	Type	Supported Networks	Best For
MetaMask	Browser Extension/Mobile	Ethereum, Arbitrum, Polygon	DEX trading, frequent access
Trust Wallet	Mobile	Multi-chain	Mobile users, multiple assets
OKX Wallet	Browser/Mobile	Multi-chain	Integrated exchange access
Phantom	Browser/Mobile	Solana, Ethereum	Solana ecosystem users

Cold Wallets (Offline, Secure)

Wallet	Type	Security Level	Best For
Ledger Nano S/X	Hardware	Maximum	Long-term holding
Trezor	Hardware	Maximum	Maximum security seekers
Coldcard	Hardware	Maximum	Bitcoin-focused users

You may also consider transferring your USDY to a hardware wallet to enhance security, especially if you plan to hold it for the long term. This significantly reduces the risk associated with keeping digital assets in an online wallet.

Trading Pairs and Liquidity

The most popular exchange to buy and trade Ondo US Dollar Yield is Momentum, where the most active trading pair USDY/USDC has a trading volume of $90,453.17 in the last 24 hours. Other popular options include Bybit and Orca.

Available Trading Pairs:

USDT/USDY - Highest volume on centralized exchanges
USDC/USDY - Primary pair on Momentum and DEXs
ETH/USDY - Available on Ethereum DEXs
BTC/USDY - Limited availability
SOL/USDY - Available on Solana DEXs

Fees Comparison

Centralized Exchange Fees

Exchange	Maker Fee	Taker Fee	Withdrawal Fee	Notes
Bybit	0.1%	0.1%	Network dependent	Competitive rates
Bitget	0.1%	0.1%	Network dependent	Similar to Bybit
OKX	0.08%	0.1%	Network dependent	Slightly lower maker fee

Decentralized Exchange Fees

Uniswap: 0.01%, 0.05%, 0.30%, or 1.00% pool fee (varies by pair)
SushiSwap: 0.25% - 1.00% depending on pool
PancakeSwap: 0.01% - 1.00% depending on pool
Gas Fees: $5-$50+ on Ethereum (varies by network congestion)

Security Best Practices

Before Purchasing:

Evaluate the platform's security measures, market liquidity, and fee structure. Always verify platform legitimacy and watch out for potential scams.
Use official website URLs only (bookmark them)
Enable two-factor authentication (2FA) on all exchange accounts
Use strong, unique passwords

During Purchase:

Make sure you have enough blockchain native tokens, such as ETH on the Ethereum blockchain, to pay for transaction fees. Also, pay attention to slippage and adjust slippage tolerance according to your preferences.
Verify contract addresses before swapping on DEXs
For USDY, the contract address is 0x96f6ef951840721adbf46ac996b59e0235cb985c.
Start with small amounts to test the process

After Purchase:

Never share your seed phrase or private keys. Be cautious of phishing scams that try to trick you into giving away your information.
Transfer to cold storage if holding long-term
Keep backup copies of seed phrases in secure locations
Regularly verify wallet balances

KYC Requirements Overview

Direct Ondo Onboarding

You will be required to provide your basic personal information, verify your identity (by providing a driver's license, passport, or national ID card), provide the wallet address where you will receive your Tokens, and review and complete the required legal and tax forms. The process normally takes about 5 minutes to complete and can be done completely online via our onboarding wizard.

Required Documents:

Government-issued ID (passport, driver's license, or national ID)
Proof of address
Wallet address for token receipt
Completed tax forms

Exchange KYC Requirements

Most centralized exchanges require:

Full legal name
Date of birth
Address verification
Government-issued ID
Sometimes proof of income or funds source

Regional Availability and Restrictions

Prohibited Regions

Individuals residing in or citizens of, and entities organized under the laws of or with a principal place of business in, any jurisdiction listed below ("Prohibited Persons") are prohibited from subscribing for, acquiring or redeeming USDY tokens. Persons who are located in, or place buy orders from within the United States, or any of its states, possessions, territories or federal districts, and persons who are "U.S. persons" or acting for the account or benefit of any "U.S. persons" within the meaning of Rule 902 of Regulation S promulgated under the United States Securities Act of 1933, as amended, are also prohibited from subscribing for, acquiring or redeeming USDY tokens.

Restricted Regions

Individuals residing in or citizens of, and entities organized under the laws of or with a principal place of business in, any jurisdiction in the table set forth below must satisfy one or more of the eligibility requirements set forth opposite the name of such jurisdiction in order to be issued USDY tokens. For convenience purposes only, the below table also lists the key financial thresholds that are generally sufficient for an individual or entity to satisfy the applicable requirements.

Permitted Regions:

European Economic Area (qualified investors only)
United Kingdom (qualified investors only)
Switzerland (professional clients only)
Most non-US jurisdictions (subject to local regulations)

Alternative Purchase Methods

Over-the-Counter (OTC) Trading

Consider OTC (Over-the-Counter) trading—a direct way to buy or sell large amounts of crypto privately. OTC trading involves buying or selling crypto directly with another party, often facilitated by a broker or a platform like WEEX.

Advantages:

Better rates for large purchases
Reduced slippage
Privacy and discretion
Personalized service

Disadvantages:

Minimum purchase amounts typically $50,000+
Longer settlement times
Requires direct broker contact

Peer-to-Peer (P2P) Exchanges

Peer-to-peer (P2P) exchanges connect buyers and sellers directly, allowing you to buy or sell crypto using various payment methods. With P2P trading, you have more freedom to select your preferred offers and trade directly with counterparties.

Important Considerations

Market Information:

Current USDY price: ~$1.11 USD
Market cap: ~$701 million
24-hour trading volume: ~$493,000
Circulating supply: ~630 million tokens

Risk Factors:

Acquiring USDY involves risks. A USDY holder may incur losses, including total loss of their purchase price.
Regulatory changes may affect availability
Smart contract risks on blockchain
Counterparty risks with underlying assets

Yield Considerations:
USDY comes in two versions: an "accumulating" version (USDY) whose per-token price increases as yield accrues, and a "rebasing" version (rUSDY) whose price remains at US$1.00. Whereas the price of USDY tokens increases as the value of the underlying assets increase, with rUSDY you simply receive more rUSDY in your wallet; in effect the yield on the underlying assets accrues in the form of additional rUSDY tokens.

Official Resources

Ondo Finance Official Site: https://ondo.finance/
USDY Documentation: https://docs.ondo.finance/general-access-products/usdy
Bybit Exchange: https://www.bybit.com/
Uniswap DEX: https://app.uniswap.org/
MetaMask Wallet: https://metamask.io/