Ondo Finance's USDY tokenized Treasury note hits $2.1B market cap three years after launch, with $8.5B in transfer volume and nearly 30,000 holders across six blockchains.
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Ondo Finance's tokenized Treasury note, USDY, hit a market capitalization of $2.1 billion three years after its launch, the company said. The token, short for U.S. Dollar Yield Token, is backed by short-term U.S. Treasuries and bank deposits. It now ranks among the top three tokenized Treasuries by market cap.
USDY launched in August 2023, at a time when the tokenized real-world asset market was still niche. Since then, Ondo has expanded the product across six blockchains. The token now has nearly 30,000 holders, according to the company. Transfer volume over the three years has reached $8.5 billion.
The token's price sits slightly above $1 because the yield it earns gets added back into the token, lifting its value over time. The reserves are held in Treasury bills and bank demand deposits, both considered cash equivalents. Ondo said the token supports permissionless transfers and allows minting or redemption around the clock.
The milestone underscores a broader push to move real-world assets onchain. Tokenized Treasuries are blockchain-based versions of government debt that let holders earn yield directly onchain, bypassing traditional brokerages. Ondo has positioned itself around institutional standards, keeping the product compliant while preserving the flexibility of blockchain transfers.
Tokenized QQQ drove 288% of July volume; Robinhood Chain bets on it, a sign that the market for onchain assets is broadening beyond just Treasuries. Ondo's USDY remains one of the earliest and largest examples of that trend.
The company did not give guidance on further expansion plans for USDY. The product is available on six networks, including Ethereum, Polygon, and Solana.
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