GREENWICH, Conn., Aug. 3, 2023/PRNewswire/ — Ondo Finance, a leader in institutional-grade chain finance, is pleased to announce the launch of USD Yield (USDY), the world’s first tokenized bond-backed note from the US Treasury and bank deposits. USDY provides similar accessibility and utility to stablecoins, while paying token holders a return (5% APY at launch) and offering significantly enhanced investor protections.
USDY’s debut follows Ondo Finance’s entry into the tokenization space earlier this year with OUSG (Ondo Short-Term US Government Bond Fund), the first on-chain US Treasury bond product. With over $160 million in assets, OUSG has garnered substantial interest, but is accessible exclusively to institutional investors.
“Crypto is all about financial inclusion, and we are delighted to offer a profitable product with a mature financial structure and investor protections for both individual and institutional investors. USDY will broaden the universe of investors looking to save and spend in an environment more globally and digitally natively by sharing performance and providing greater transparency and security compared to conventional stablecoins,” said Nathan Allman, CEO of Ondo Finance.
USDY is senior secured debt issued by Ondo USDY LLC, a US domiciled special purpose vehicle, managed by a board that includes an independent director and designed to maximize bankruptcy-remote. USDY is overcollateralized by a first-loss equity position of approximately 3% that absorbs short-term fluctuations in US Treasury bond prices.
Ankura Trust will act as Verification Agent and Collateral Agent for USDY in accordance with the underlying governing documents. Ankura Trust will publish daily reports starting 60 days after launch that will provide transparency on issuer assets for the benefit of lenders. As Collateral Agent, Ankura will be prepared to seize the assets collateralizing the tokens and reimburse holders if Ondo ceases operations or defaults on certain debt covenants, subject to USDY holders’ approval. This structure ensures a degree of transparency and investor protection that traditional stablecoins lack.
USDY is currently accepting deposits. Non-US investors can learn more at ondo.finance/usdy.
Responsibility
USDY tokens are not, and will not be, offered or sold in the United States or to US persons. In addition, USDY tokens have not been registered under the Securities Act of 1933, as amended (the “Act”) or the securities laws of any other jurisdiction, and may not be offered, sold, or otherwise transferred in the United States. or to US persons, unless the securities are registered under the Act, or an exemption from the Act’s registration requirements is available. Additional transfer limitations also apply.
About Ondo Finance
Ondo Finance is dedicated to improving the safety, efficiency and accessibility of financial services through institutional-grade on-chain offerings. Ondo Finance has a technology arm focused on developing on-chain financial software and an asset management arm that creates and manages tokenized products.
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