Ondo Finance has officially launched its flagship stablecoin, United States Dollar Yield (USDY), on the Stellar network.
With USDY now live, individuals and small businesses can preserve value while earning yield—without sacrificing liquidity for everyday spending. Institutions can also leverage USDY for treasury management, gaining a secure, interest-bearing asset available 24/7.
Beyond savings, USDY can serve as collateral for borrowing and lending within Stellar’s growing DeFi ecosystem. In cross-border payments, funds that would normally sit idle during transfers can now earn yield until settlement.
“The global reach of the Stellar ecosystem combined with a yield-bearing asset like USDY levels up what is possible onchain,” said Denelle Dixon, CEO of the Stellar Development Foundation.
USDY is already integrated with Stellar-based apps including LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet, making it immediately available for use across payments, DeFi, and treasury management.
A Yield Upgrade for Stellar Stablecoins
According to Ondo Finance, USDY is the first stablecoin on Stellar that automatically accrues yield from U.S. Treasuries and bank deposits. While Stellar hosts other fiat-backed stablecoins like USDC and EURC, those tokens maintain a fixed value without generating interest.
Other tokenized assets on Stellar, such as Etherfuse’s Stablebonds, offer treasury-linked returns but function more like traditional bonds rather than yield-generating stablecoins integrated into payments and DeFi.
“Stablecoins unlocked global access to the U.S. dollar. With USDY, we’re taking the next step by bringing U.S. Treasuries onchain in a form that combines stability, liquidity, and yield,” said Ian De Bode, Chief Strategy Officer at Ondo Finance.
