Mantle and Ondo Finance launch RWA-backed USDY yield token

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Mantle and Ondo Finance have launched USDY — a yield token backed by real-world assets on the Ethereum Layer 2 Mantle Network.

Decentralized autonomous organization-led web3 ecosystem Mantle partnered with tokenized financial products platform Ondo Finance to launch USDY, a yield-generating token backed by real-world assets.

Ondo Finance is the leader in tokenized securities with approximately 50% market share, according to a Steakhouse Financial Dune Analytics dashboard, and has legally structured USDY as a tokenized bearer instrument. Users can also onboard directly into USDY on Mantle via Ondo Finance’s mint and bridging mechanism.

Rebasing counterpart mUSD — a wrapped version of USDY designed to maintain a peg to $1 with interest distributed via new tokens — is also expected to be issued by Ondo Finance in the coming weeks, the team added. “We are delighted to partner with Mantle to bring USDY to market with deep secondary market liquidity,” Ondo founder and CEO Nathan Allman added.Mantle Network unveiled its mainnet alpha at EthCC in July. Following a previous merger with backer BitDAO in May — amalgamating BitDAO’s governance framework and treasury with the network — Mantle is now backed by one of the largest treasuries in crypto, worth around $2 billion.

 

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