tl;dr
Ondo Finance has launched its USDY fund on the Sei Network, featuring tokenized short-term US Treasuries and bank deposits. This is the first US government bond product on a scalable blockchain, advancing regulated financial products in DeFi. The ONDO token price rose 12.6% after the launch, signali...
Ondo Finance has officially launched its USDY fund on the Sei Network, backed by short-term US Treasuries and bank deposits. This strategic move marks the first time a US government bond product has been tokenized on a truly scalable blockchain, highlighting a significant step toward integrating regulated financial products into the decentralized finance (DeFi) ecosystem.
Following the launch announcement, the ONDO token price surged by 12.6%, reflecting strong investor confidence in the expanding potential of tokenized real-world assets (RWA). By enabling fractional ownership, transparent transfers, and easier management of bonds, Ondo is revolutionizing how traditional “safe haven” assets operate within blockchain technology.
Ondo chose to build on the Sei Network, a Layer-1 blockchain optimized for financial applications with high throughput and reduced transaction latency. Sei’s design improves order execution speed, which is essential for running financial instruments like USDY that mimic traditional bonds. This choice aligns with Ondo’s vision to leverage technological advantages and attract new users amid a rapidly growing DeFi landscape, as evidenced by Sei’s recent all-time high Total Value Locked (TVL) of $626 million.
Additionally, Ondo’s connection to the World Liberty Financial project, which has selected ONDO as a strategic reserve token, adds a layer of legitimacy and signals confidence from politically connected institutions. This backing underscores the increasing seriousness with which traditional capital views the digital asset space.
The 12.6% rise in ONDO’s price following the USDY fund launch is more than a fleeting market reaction; it represents momentum behind Ondo’s leadership in the tokenization wave for real-world assets. With the cryptocurrency market gaining renewed traction and institutional interest in RWA protocols growing, the marriage of bonds, blockchain, and instant liquidity is poised to be a transformative development in global finance.