Ondo Finance’s US Treasury-backed stablecoin expands to Sui

Ondo Finance’s US Treasury-backed stablecoin expands to Sui
Layer 1s
• February 7, 2024, 9:00AM EST

Nearly three months after introducing a cross-chain solution, Ondo ONDO
Finance is expanding to Sui Ondo Finance’s US Treasury-backed stablecoin expands to Sui SUI
‘s Layer 1 blockchain, according to a statement. 

“The expansion will bring Sui Network’s first native dollar-denominated token (including stablecoins and interest-bearing stablecoin substitutes) in the form of Ondo USD Yield or ‘USDY,’ a US treasury-backed and interest-bearing token issued by Ondo,”the company said.

Ondo Finance is the issuer of the USDY stablecoin, a tokenized note secured by short-term U.S. Treasurys and bank demand deposits, which offers yield generated from the underlying assets. Recently, Ondo COO Justin Schmidt suggested the market for yield-bearing stablecoins could eventually exceed the “total addressable market” for regular stablecoins.

Last November, Ondo Finance collaborated with Axelar to introduce a cross-chain solution called Ondo bridge that supports the issuance of native tokens, including USDY, across blockchain networks supported by Axelar AXL
. This was after Axelar in 2022
partnered with Mysten Labs, the developer of Sui, “to deliver cross-chain user experiences.”

‘Perfect fit for Ondo’

Sui launched its mainnet last May. It competes with other high-performance blockchains like Solana, Aptos and Sei.

“The people who interact with our platform want fast and efficient transactions, which should be essential for any blockchain project,” Ondo Finance founder and CEO Nathan Allman said in a statement. “Sui’s growth and network performance offer clear confirmation that its network is the perfect fit for Ondo’s ecosystem.”

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About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master’s degree in Digital Sociology.