USDY (Ondo) is a tokenized T-bill yield-bearing dollar. Non-US users can hold USDY to earn ~5% APR from short-term Treasuries. NYDFS-supervised issuer, growing acceptance across DeFi protocols. Not available to US retail (only qualified investors).
What USDY is
USDY is issued by Ondo Finance and backed by short-term US Treasuries + demand deposits. Unlike USDC which passes zero yield to holders, USDY passes the Treasury yield through — holders see their USDY balance (or exchange rate) grow over time.
Availability
- Non-US retail: yes (subject to Ondo's KYC)
- US retail: no
- US qualified investors: yes
Where USDY works
- Non-US crypto holders wanting on-chain Treasury yield
- DeFi users looking for yield-bearing collateral alternatives to sUSDe
- Institutional treasuries needing on-chain Treasury exposure
Verdict
USDY is the reference tokenized T-bill dollar for non-US users. On-chain Treasury yield without needing to run US brokerage accounts.