Ondo Finance has introduced its yield-bearing stablecoin, $USDY, to the Cosmos ecosystem through Noble. This launch marks the first time a tokenized treasury product is accessible on Cosmos.
Integration with Cosmos Chains
With this integration, several Cosmos chains, including Injective, Helix, Osmosis, and Pyth, can now leverage $USDY in decentralized finance (DeFi) applications. Cosmos, often called the Internet of Blockchains (IBC), is a proof-of-stake blockchain that acts as a central hub for interoperable appchains.
Benefits of $USDY
$USDY is a tokenized note backed by U.S. Treasuries and bank demand deposits. This stablecoin, with a native yield rate of 5.3% APY, allows holders to earn yield while utilizing the stablecoin within DeFi. However, it’s important to note that $USDY is not available to non-U.S. individuals or investors.
Noble’s Role in the Cosmos Ecosystem
Noble serves as a routing hub for asset transfers and issuance within Cosmos’ Interchain. The team, which raised $3.3 million in an investment round led by Polychain Capital in October 2023, has already launched USDC and $USDY on Cosmos. They also plan to introduce Hashnote’s USYC and FRAX to the Interchain.
Market Capitalization Insights
Noble’s cumulative stablecoin market capitalization stands at $246 million, with 99% in USDC and 1% in $USDY. Currently, $USDY has a market cap of $323 million, compared to USDC’s $33 billion and USDT’s $114 billion.
Conclusion
Ondo Finance’s $USDY stablecoin is set to make a significant impact on the Cosmos ecosystem. With a solid backing and attractive yield, it offers new opportunities for DeFi applications and users.