STBL USDY Selection Could Spark Massive ONDO Crypto Breakout - Here’s Why

Stablecoin dominoes begin to fall as STBL picks USDY—and ONDO stands ready to capitalize.

The Ripple Effect

When major stablecoin protocols make strategic treasury selections, the entire DeFi ecosystem feels the tremors. STBL's USDY integration isn't just another partnership—it's a fundamental shift in how stablecoin protocols approach yield-bearing assets.

ONDO's Perfect Position

While traditional finance still debates whether crypto has 'real value,' ONDO's infrastructure sits at the exact intersection where institutional-grade finance meets blockchain innovation. The timing couldn't be more perfect—or more dangerous for those caught on the sidelines.

Breakout Conditions

Market structure shows ONDO consolidating at key support levels just as this fundamental catalyst emerges. Remember when everyone said algorithmic stablecoins were 'too complex' to matter? USDY's selection proves otherwise—and ONDO's architecture is built specifically for this new era of programmable money.

Because nothing says 'financial revolution' like watching hedge fund managers suddenly pretend they understood tokenomics all along.

Why Is the USDY-USST Integration Important for Stablecoin Design?

USDY is a yield-bearing, tokenized cash product backed by short-term US Treasuries and bank deposits, built for non-US users.

USST, issued by STBL, is a payment stablecoin pegged 1:1 to the dollar and backed by real-world assets. Its design separates daily liquidity (USST) from the yield stream through a separate claim, helping the peg stay firm while letting issuers keep the yield.

USDY, Ondo’s “yieldcoin,” gains value from underlying interest. Ondo reinvests the interest, updates USDY’s rate monthly, earns the spread, and charges a 0.2% redemption fee.

STBL has now picked USDY as the main collateral for up to $50 million in new USST issuance. The MOVE aims to combine overcollateralization, on-chain governance of fees and haircuts, and institutional-grade asset backing.

STBL CEO Avtar Sehra said, “Stablecoin design has to catch up with reality: the world is moving to tokenized reserves.”

The integration could boost demand for USDY through STBL’s minting process, expanding its role as real-world asset collateral and strengthening Ondo’s reach across total value locked, integrations, and on-chain activity.

ONDO mainly governs the Ondo ecosystem, but growth in USDY use, along with product fees and network effects, has been a key driver for the token’s narrative. 

Any real price move depends on mint volumes, DeFi listings that expand USDY’s utility, and new partnerships.

The STBL update emphasizes the on-chain control of the collateral regulations, as well as the fee routes, and mentions the system as being multi-layered and overcollateralized. 

According to Ondo, the treasuries and bank deposits support USDY, which is issued outside the US. The combination of them seeks to demonstrate that institutional-grade collateral can scale the supply of stablecoins without liquidity loss.

ONDO Price Prediction: Is ONDO Crypto Preparing for a Major Breakout After the USDY Collateral News?

According to Coingecko, ONDO was trading at a silent level of approximately $0.90 in the last 24 hours, with an approximate volume of around $180-$186 million transactions per day. 

(Source:)

Ondo USDY, a stable money-generating asset, had an active supply of about 620-625 million tokens and was worth between $675-$690 million. The subdued reaction indicates that traders did not receive the new news on STBL collateral with significant changes in market sentiment.

According to a chart that analyst DonOfCharts has posted, ONDO/USDT is developing a symmetrical triangle setup that tends to lead to explosions. 

if you do not like money

do not enter this $ONDO trade pic.twitter.com/QhfOfclSaa

— Don (@DonaldsTrades) October 10, 2025

The token is currently trading around the area of $0.89, and it is based on the lower support trendline in the triangle, which has been maintained since July. 

(Source:)

The upper boundary lies around $1.05-$1.10, marked by past swing highs. A decisive breakout above that zone could push ONDO toward the projected target NEAR $1.59, implying a 70% upside from current levels.

For now, ONDO appears to be in a consolidation phase within its broader bullish structure. Traders are watching the $0.83 support area closely. A drop below that level could weaken the current bullish setup and expose the token to short-term downside pressure.

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