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    Ondo Finance partners with LayerZero to boost USDY interoperability across multiple platforms

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    Ondo Finance is collaborating with LayerZero to increase interoperability for its principal digital coin, the US Dollar Yield Token (USDY). Using LayerZero’s Omnichain Fungible Token technology, USDY is now recognized and usable across multiple digital ledgers, enhancing its position against competition like the USD Coin and Tether. USDY offers holders an annual return of 4.9% and is supported by bank deposits and short-term Treasury bills. The token is currently recognized on Ethereum, Mantle, and Arbitrum platforms.

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    Ondo Finance, a company dealing in digital assets that represent actual things (real-world assets, or RWA), is working with LayerZero to allow its main digital coin, which gives returns and is pegged to stable values, to be recognized and usable across many digital ledger systems. LayerZero confirmed this on November 26.

    What this means is that users can now use Ondo’s US Dollar Yield Token (USDY) and its digital version of US Treasury bonds on several blockchain platforms without having to create new tokens or exchange assets between these platforms.

    Merging with LayerZero’s technology called Omnichain Fungible Token (OFT) puts USDY in a strong position against other stablecoins, like USD Coin (USDC) and Tether (USDT).

    Currently, the USDY coin is recognized and usable on Ethereum, Mantle, and Arbitrum, and Ondo plans to add more.

    Ondo’s USDY is designed to let holders earn a 4.9% annual return. Each token is supported by bank deposits and short-term Treasury bills. So far, it has a total locked value of over $450 million and is found on eight blockchain networks including Ethereum and Solana.

    The Ondo also has another digital version of a Treasury bond called Ondo Short-Term US Government Treasurys (OUSD).

    LayerZero’s technology works by destroying tokens on the original platform whenever a transfer across several ledgers is initiated. This way, the number of tokens stays the same across multiple platforms and enables tokens to be transferred across multiple blockchains without involving complex operations.

    The total value of all digital versions of Treasury bonds has tripled in 2024, with a total market cap of approximately $2.5 billion as of November 26. Of all, Ondo is the leading protocol with a total locked value of $650 million, beating competitors like Securitize, Hashnote, and Franklin Templeton.

    In total, digital real-world assets represent a massive global opportunity worth $30 trillion.

    Note that USDY is not available for US investors and can’t be transferred for 40 days.

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