Sky Ecosystem leads $13.5M Osero round for stablecoin yield

The $13.5 million round lands in a market where stablecoin supply has surged past $200 billion and yield-bearing alternatives are multiplying. Projects like Ethena, Usual, and Mountain Protocol have each raised significant capital to build yield products that compete with traditional money market funds. The difference is that Osero is entering with an explicit DeFi-native backer in Sky, rather than a purely centralized or exchange-based distribution model.

Stablewatch, the incubator, has not disclosed Osero’s exact yield generation mechanism. The project’s name and the incubator’s focus on stablecoin infrastructure suggest a product that may aggregate yields from multiple DeFi protocols, or structure fixed-income-like returns using onchain collateral. The round’s size, at $13.5 million, is large enough to fund a full engineering team and initial liquidity provisioning. It is not so large that it implies an immediate, fully scaled launch.

The competitive pressure is real. Franklin Templeton and Kraken recently announced a partnership to explore onchain yield products, bringing institutional credibility and distribution. Ethena’s USDe has grown to a multibillion-dollar market cap by offering a delta-neutral yield strategy. Osero will need to differentiate either through yield source, risk management, or distribution. Its advantage, if it materializes, will be native integration with a major DeFi ecosystem that already has deep liquidity and a track record of surviving multiple market cycles. Sky’s USDS stablecoin itself holds a multibillion-dollar market cap, providing a ready base of potential users.

Osero’s Product Launch and the Next Integration Marker

The funding round creates a clear decision point for traders and DeFi participants tracking the stablecoin yield sector. The next concrete marker is Osero’s product launch and any announcement of integration with Sky’s USDS or Spark. If the project delivers a yield product that is natively accessible through Sky’s interface, it could pull stablecoin liquidity away from generic lending pools and into a structured, risk-tiered offering.

The round also puts pressure on other DeFi protocols to either partner with yield startups or build competing products internally. For Sky, the investment is a bet that the ecosystem can capture a larger share of the stablecoin yield market, which is increasingly contested by both crypto-native projects and traditional finance entrants.

The $13.5 million figure is not the story. The story is that a major DeFi protocol is now directly funding a yield startup inside its own orbit. That changes the competitive dynamics for every project that relies on stablecoin deposits.