Ondo is Making a Major Change to USDY

Ondo Finance is pulling back USDY issuance from two of its supported networks. Ondo will discontinue minting USDY on Aptos and Noble effective September 8, 2026. The update does not affect USDY on other supported networks.

USDY is a yield-bearing token issued by Ondo Finance, backed by short-duration U.S. Treasuries and bank demand deposits. Each USDY represents a senior unsecured claim on a portfolio held by Ondo USDY LLC, a Delaware bankruptcy-remote vehicle.As of early September 2026, total USDY outstanding stood at approximately $2.14 billion, backed by underlying assets of $2.21 billion, giving a collateralization ratio of around 105.55%.

Why Osmosis and Mantra Holders Are Also Affected

The change extends beyond Aptos and Noble directly. Because USDY on Osmosis and Mantra is bridged from Noble via IBC (Inter-Blockchain Communication), holders on those networks are caught up in the transition as well. Ondo has confirmed that USDY will remain fully backed throughout the process, and that all affected holders will have a clear path to either migrate or exit.

What Holders Need to Do

The options available depend on the size of a holder's position. Holders with at least 1,000 USDY can bridge to another supported network or redeem directly with Ondo at net asset value (NAV). That migration and redemption window stays open until September 8, 2027, giving larger holders a full year to act.

Holders with less than 1,000 USDY have a shorter runway. They can use third-party market liquidity to exit during a transition period that closes on December 7, 2026. Osmosis and Mantra holders have an additional route available: they can bridge their USDY back to Noble first, then follow whichever redemption or exit path applies to their position size.

The key point is that this is a change to where USDY can be issued, not a wind-down of the token itself or its backing. Holders on Ethereum, Solana, Mantle, Sui, and other supported networks are unaffected.

Sources:Ondo Finance: USDY Product PageOndo Finance: USDY DocumentationEco: Ondo USDY Tokenized Treasuries Explained