Ondo Finance Disrupts Traditional Banking with USDY Launch on Sei Network—Tokenized Treasuries Go Mainstream

Wall Street's worst nightmare just got a blockchain upgrade.

Ondo Finance flips the script on legacy finance by dropping USDY—a yield-bearing stablecoin backed by short-term US Treasuries—directly onto Sei Network's high-speed blockchain. No more begging banks for scraps of yield.

Why this matters

Tokenized treasury products are eating traditional finance alive. USDY lets investors bypass the 0.01% APY joke of savings accounts and grab institutional-grade yields with DeFi convenience. The Sei integration means near-instant settlements—something your local bank still can't manage in 2025.

The cynical take

Banks will spin this as 'innovation' after spending decades lobbying against it. Meanwhile, Ondo's move proves what crypto natives knew all along: the future of finance doesn't need marble-floored buildings or 'relationship managers' charging 2% fees for the privilege of losing your money.

Game on.

TLDR

• Ondo launches USDY on Sei, bringing tokenized Treasury yield to fast DeFi.

• Sei adds USDY token, merging real-world yields with low-latency blockchain.

• Ondo’s USDY now live on Sei, offering 4.25% APY via tokenized Treasurys.

• Sei integrates USDY to expand DeFi access to stable, yield-bearing assets.

• Tokenized Treasurys hit Sei as Ondo deploys USDY for global DeFi growth.

Ondo Finance has launched its United States Dollar Yield (USDY) product on the Sei Network, expanding access to tokenized Treasurys. This marks the first Treasury bill tokenization on Sei, a high-speed LAYER 1 blockchain built for digital assets. The deployment increases the accessibility of fixed-income products across a scalable and low-latency infrastructure.

The SDF is proud to see that USDY by @OndoFinance will soon be deployed on @SeiNetwork.

With a strong track record of delivering tokenized assets at scale, Ondo’s pedigree is a powerful compliment to Sei’s performant infrastructure.

Markets MOVE Faster on Sei. ($/acc) pic.twitter.com/xXeyyMr3iK

— SEI Development Foundation (@Sei_FND) July 17, 2025

USDY, offering a 4.25% APY, provides exposure to short-term U.S. Treasurys and bank demand deposits. It targets non-U.S. users seeking stable yield combined with blockchain utility. This expansion adds new yield-generating opportunities on Sei for DeFi protocols and applications.

Sei’s parallel execution and 400-millisecond block finality make it suitable for institutional-grade assets. By integrating with USDY, the network reinforces its position in the real-world asset (RWA) space. The move aligns with Sei’s 2025 growth strategy focused on high-performance financial primitives.

ONDO Gains Momentum Through Strategic Deployment and Partnerships

Ondo’s USDY is already among the most adopted tokenized Treasury assets in the market. It holds over $680 million in total value locked (TVL) across various blockchains. This Sei deployment enhances its reach by providing native access to efficient on-chain yield.

Ondo specializes in institutional-grade tokenized assets, including the OUSG and OMMF products. These funds are backed by low-risk underlying assets such as Treasurys and money market instruments. ONDO currently manages approximately $1.4 billion in assets, making it one of the leading RWA platforms.

The firm continues to expand its infrastructure through acquisitions and partnerships. This week, it acquired blockchain developer Strangelove to strengthen on-chain integration. It also plans to acquire Oasis Pro to obtain broker-dealer licensing for entry into tokenized equities.

SEI Strengthens Position in Onchain Financial Markets

Sei Network, built using the Cosmos SDK, is optimized for financial market applications. It supports EVM compatibility and utilizes parallel order execution for increased throughput. The blockchain achieved 821% year-over-year TVL growth in 2025, surpassing $670 million.

Sei’s infrastructure allows for fast, cost-effective deployment of asset-backed products like USDY. This positions Sei as a viable platform for high-quality, yield-focused onchain instruments. The addition of USDY bolsters its ambition to serve as a Core layer for DeFi institutions.

The Sei Development Foundation supports this strategic direction by aligning with real-world financial platforms. Integration with Ondo reflects rising demand for stable and yield-bearing digital assets. The partnership enhances Sei’s credibility in hosting regulated and scalable financial products.