DeFi Meets US Treasuries: Ondo Finance Launches USDY Fund on Sei Network

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In a groundbreaking move, Ondo Finance has announced the launch of its USDY fund, backed by short-term US Treasuries and bank deposits, on the Sei Network.

The news has sent the ONDO token price soaring by 12.6%, reflecting strong investor confidence in the expanding potential of the tokenized real-world asset (RWA) sector.

Ondo Finance Brings US Treasuries to the Sei Network

This event marks a significant milestone, as it is the first time a US government bond product has been tokenized on a truly scalable blockchain, Sei Network (SEI). It represents a strategic move to bring regulated financial products into the DeFi ecosystem.

US Treasuries have long been considered the “safe haven” asset in traditional finance. With tokenization, fractionalizing, transferring, and owning bonds become far easier, more transparent, and more efficient than with traditional methods.

“USDY will be the first tokenized treasuries asset on the Sei network, one of the fastest-growing modular blockchain ecosystems, bringing institutional-grade onchain yield to its users for the first time,” Ondo said.

It’s also worth highlighting Ondo’s choice to build on Sei, a Layer-1 blockchain known for high throughput and optimization for financial applications. Compared to more widely used blockchains today, developers specifically designed Sei to reduce transaction latency.

The chain also aims to improve order execution speed, both of which are critical for running financial products that emulate traditional assets like USDY. Moreover, Sei’s TVL hit an all-time high of $626 million recently, reflecting explosive DeFi growth and rising investor interest.

Choosing Sei over more crowded ecosystems reflects Ondo’s strategic vision in pursuing technological advantages and attracting new users.

Another notable point is Ondo’s connection to the World Liberty Financial project. World Liberty has selected ONDO as a strategic reserve token, signaling long-term confidence in the project.

This quiet endorsement from politically connected entities adds significant legitimacy to Ondo. It also reflects the growing seriousness with which traditional capital is approaching the digital asset space.

The 12.6% price jump in ONDO following the announcement isn’t merely a short-term market reaction. It signals the growing belief that Ondo is leading the tokenization wave for real-world assets.

With the cryptocurrency market on the rise again, investment in RWA protocols is booming, and there is growing interest from both financial institutions and governments. The combination of bonds, blockchain, and instant liquidity is an inevitable step.

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2025-07-18 10:22