As a seasoned researcher with a keen interest in the ever-evolving world of blockchain and decentralized finance (DeFi), I find this collaboration between Ondo Finance and LayerZero particularly intriguing. The ability to seamlessly transfer Ondo’s flagship stablecoin, USDY, across multiple blockchain networks without the need for asset swapping or minting new tokens is a game-changer. This integration of LayerZero’s Omnichain Fungible Token (OFT) standard positions USDY as a compelling alternative to traditional stablecoins like USDC and USDT.
Ondo Finance, a platform that tokenizes real-world assets, has partnered with LayerZero to ensure their primary yield-generating stablecoin can be easily exchanged across various blockchain platforms. This information was shared by LayerZero with CryptoMoon on November 26th.
Users can now effortlessly utilize the Ondo US Dollar Yield Token (USDY) and its tokenized U.S. Treasury products on various blockchain platforms, all without the need for creating new tokens or transferring assets between different chains, according to Ondo.
In the opinion of Ondo, incorporating LayerZero’s Omnichain Fungible Token (OFT) standard makes USDY an attractive choice compared to conventional stablecoins such as USD Coin (USDC) and Tether (USDT), arguably offering a more compelling option.
According to Ondo’s statement to CryptoMoon, the USDY stablecoin is now interchangeable in equal units across Ethereum, Mantle, and Arbitrum. They aim to expand this compatibility to additional networks in the near future.
Related: Ondo’s USDY yield coin expands to Arbitrum
Ondo’s USDY is a type of yield token that offers an approximate yearly return of 4.9%. The value of each USDY token is tied to bank deposits and short-term U.S. government securities, as confirmed by Ondo.
According to DefiLlama, the decentralized finance platform known as USDY boasts a locked-in value exceeding $450 million and can be utilized across eight distinct blockchain networks, such as Ethereum and Solana.
As an analyst, I’d like to highlight that, in addition to our existing offerings, we at Ondo have introduced a new tokenized product – the Ondo Short-Term US Government Treasurys, abbreviated as OUSD. This is another innovative way for us to serve our clients and potentially expand our investment portfolio.
According to LayerZero’s official site, their OST standard operates by eliminating tokens from the original blockchain each time an inter-chain transfer occurs, thereby establishing a single, uniform token balance across both networks.
The company stated that this feature enables “the seamless movement of tokens between various blockchains without requiring asset encapsulation, intermediary chains, or decentralized liquidity reserves.
In 2024, the market capitalization for tokenized Treasury products has grown more than threefold, based on statistics from RWA.xyz. As of November 26th, these assets collectively hold a market value of approximately $2.5 billion.
In simple terms, Ondo stands out as the preferred tokenized U.S. Treasury platform among its competitors. With a TVL (Total Value Locked) of approximately $650 million, Ondo surpasses the likes of Securitize, Hashnote, and Franklin Templeton, as reported by RWA.xyz.
As an analyst, I’ve gathered that collectively, tokenized Realized and Wrap-around Assets (RWAs) present a whopping $30-trillion market potential globally. This insight comes from Colin Butler, who serves as the global head of institutional capital at Polygon, during his recent interview with CryptoMoon.
USDY is not available to US investors and cannot be transferred for 40 days.
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2024-11-26 22:16