USDY

Overview

USDY is not a payment stablecoin. It is a tokenized debt instrument that pays yield to its holder, which puts it in a different category from the dollar stablecoins it sits beside on this map.

The issuing vehicle

Ondo Finance issues it through a ring-fenced entity. Ondo's Trust & Security documentation describes Ondo USDY LLC as a special purpose vehicle whose activities are limited to an enumerated list, including borrowing funds from prospective lenders, issuing USDY tokens, allocating the proceeds to short-term US Treasuries and bank demand deposits, and creating security interests over that collateral. Holders are senior secured lenders to that vehicle, not depositors.

How the price behaves

Ondo describes USDY as "a secured tokenized debt over-collateralized by short-term US Treasuries and high-quality bank demand deposits". The token accrues value against the dollar and holds no fixed $1 price. Ondo also issues rUSDY, a rebasing version that holds $1 and pays interest as new units.

Access is restricted

Ondo's product page limits USDY to "Non-US Individuals & Organizations", and the documentation says minting and redemption are open to qualifying non-US individual and institutional investors.

Sources: Ondo Finance, Trust & Security documentation (SPV structure, Regulation S, FinCEN registration), Ondo Finance, Introducing Ondo USD Yield (USDY) announcement, Ondo Finance, USDY product page

Backing and reserves

The portfolio and the buffer

Ondo's USDY page reported a portfolio of 99.47% US Treasuries and a collateralization ratio of 104.97% when read on 18 August 2026. The page lists the backing as "Bank Deposits; Short-Term US Treasuries" and quotes a 3.55% APY against a 3.71% yield-to-maturity on the underlying assets.

The overcollateralization is deliberate. Ondo's launch announcement said USDY "will be overcollateralized by an approximately 3% first loss position funded partially by Ondo Finance". The buffer absorbs mark-to-market moves in the Treasury portfolio before holders take a loss.

The verification agent

Ondo names Ankura Trust as "the Verification Agent and Collateral Agent for USDY holders" and said Ankura would provide daily transparency reports starting 60 days after launch. The USDY page links daily and monthly attestation reports through Dropbox.

What could not be verified

The individual attestation documents are not served as readable pages at Ondo's own domain, so the signing firm, the engagement standard and the perimeter of each report could not be verified in this review. Ondo's documentation also gives a wider backing set, "short-term US Treasuries, shares of iShares Short Treasury Bond ETF, or bank demand deposits", than the two-line description on the product page. Named custodian banks are not disclosed on the pages read here.

Sources: Ondo Finance, USDY product page (portfolio composition, collateralization ratio, APY, attestation links), Ondo Finance, Introducing Ondo USD Yield (USDY) announcement (first loss position, Ankura Trust), Ondo Finance, USDY general access product documentation (eligible collateral)

Regulation

USDY is sold under a US securities exemption, not under a stablecoin regime. Ondo's documentation states the token is "offered and sold in reliance on Regulation S under the 33 Act", the exemption for offerings made outside the United States. That is why the product page restricts holders to non-US persons.

Ondo also states that it is "registered as a money services business with the Financial Crimes Enforcement Network", and that investors "must undergo customer due diligence for anti-money laundering, countering terrorist financing, and sanctions compliance purposes".

No e-money, payment token or stablecoin licence is claimed on the pages read here.

Sources: Ondo Finance, Trust & Security documentation, Ondo Finance, USDY product page (holder eligibility)

Risks

The claim is on one entity

USDY is senior debt of Ondo USDY LLC, secured by that vehicle's collateral. A holder's recovery depends on the special purpose vehicle's isolation and on Ankura Trust performing its collateral agent role. No deposit insurance applies.

The price is not pinned

USDY accrues yield into its share price, so a market quote below the accrued value is a discount and not a depeg. Anyone reading USDY like a $1 token will misread it.

Redemption is gated

Ondo restricts minting and redemption to qualifying non-US investors and applies a $5,000 minimum on Sui, Aptos, Stellar, XRP and Noble. Secondary market liquidity is the only exit for a holder who cannot pass that gate, and it carries no par guarantee.

The collateral definition is wider than the headline

Documentation permits shares of the iShares Short Treasury Bond ETF alongside direct Treasuries and bank deposits, which adds a fund wrapper between the holder and the bills.

Disclosure verification is thin at source

Daily and monthly attestations exist as linked files, so a reader wanting to confirm the auditor, the standard and the as-of date has to open documents Ondo does not render on its own site.

Sources: Ondo Finance, Trust & Security documentation (SPV, senior debt), Ondo Finance, USDY general access product documentation (redemption minimums, eligible collateral), Ondo Finance, USDY product page (accumulating vs rebasing token, collateralization)

What this map tracks

What this map reads on chain is token supply and market price. USDY is classified as RWA-backed with short-term Treasury collateral, and the issuer is recorded as Ondo Finance in the United States.

Ondo's product page lists ten networks for USDY, so any supply figure read from a subset of those chains understates the total.

What is not read on chain

The collateral. The Treasury portfolio and the bank deposits sit off chain with the issuing vehicle, and their existence is asserted by Ankura Trust as verification agent. On-chain supply can be verified. The backing behind it cannot be, from chain data alone.

Sources: Ondo Finance, USDY product page (full network list), Ondo Finance, Introducing Ondo USD Yield (USDY) announcement (Ankura Trust as verification agent)

Common questions