STBL and Ondo Finance Partner to Back Stablecoin with $50M in Tokenized Treasuries

STBL.com and ONDO Finance have forged a $50 million partnership to collateralize next-generation stablecoins with tokenized U.S. Treasury reserves. The collaboration leverages Ondo's yield-bearing USDY instrument, backed by short-term Treasuries and cash deposits, to mint STBL's USST stablecoin.

The deal establishes a new compliance benchmark for stablecoin issuance. By separating payment and yield functions, USST maintains regulatory alignment while accessing real-world asset yields. This model could redefine institutional participation in digital currency markets.

Tokenized treasury products continue gaining traction as bridges between traditional finance and blockchain ecosystems. The $50 million reserve commitment signals growing confidence in asset-backed stablecoin architectures during a period of heightened regulatory scrutiny across crypto markets.