Ondo Finance is marking a milestone for one of its earliest products, as its tokenized Treasury note, USDY, turns three with a market cap of $2.1 billion. USDY, short for U.S. Dollar Yield To
Ondo Finance is marking a milestone for one of its earliest products, as its tokenized Treasury note, USDY, turns three with a market cap of $2.1 billion.
USDY, short for U.S. Dollar Yield Token, is a token backed by short-term U.S. Treasuries and bank deposits. According to Ondo, it now ranks among the top three tokenized Treasuries.
Tokenized Treasuries are blockchain-based versions of government debt that let holders earn yield onchain rather than through a traditional brokerage.
Ondo Finance is a company that builds tools to bring institutional-grade financial products onto public blockchains. It says USDY was one of the first signals that tokenization could reshape how financial products are issued, accessed, and used.
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USDY tracks the value of the U.S. dollar, but its price typically sits slightly above $1 because the yield each unit earns is added back into the token, lifting its value over time.
The reserves behind it are held in Treasury bills and bank demand deposits, both considered cash equivalents. Ondo says the token supports permissionless transfers and round-the-clock minting and redemption.
3 years, billions in TVL, and still growing.USDY just turned 3, reaching $2.1 billion in market cap and now a top 3 tokenized Treasury.Three years in, it's proven tokenized Treasuries can meet an institutional standard, while keeping the benefits tokenization offers:→… pic.twitter.com/GkUcWngyrE
— Ondo Finance (@Ondo) August 3, 2026
Since launching in August 2023, USDY has expanded to run across six blockchains and now counts nearly 30,000 holders, according to Ondo.
The company says the token has seen $8.5 billion in transfer volume over the last three years.
The milestone reflects a broader push to move real-world assets onchain, a market where Ondo has positioned itself around institutional standards.
By keeping the token compliant while preserving the flexibility of blockchain-based transfers, Ondo is betting that tokenized Treasuries can serve both traditional finance and crypto users at once.
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