Ondo Finance’s Yield-Bearing USDY Stablecoin Launches on Stellar—Here’s Why It Matters

Ondo Finance just dropped a yield-bearing stablecoin bomb on Stellar—and traditional finance won't know what hit it.

USDY isn't your grandma's stablecoin. This thing actually earns yield while maintaining its peg. No more parking cash in dead-end savings accounts that can't even beat inflation.

The Stellar integration changes everything. Lightning-fast settlements, near-zero fees, and global accessibility—everything TradFi promises but never delivers without taking 30% off the top.

Because let's be real: banks have been paying you 0.01% on your savings while lending it out at 19% APR. USDY on Stellar? That's just cutting out the middleman who's been robbing you blind for decades.

Stellar’s stablecoins get a yield upgrade with USDY

According to ONDO Finance, this marks the first time such a product—a stablecoin that automatically accrues yield from U.S. Treasuries and bank deposits—is available on the Stellar network. While Stellar hosts a number of fiat-backed stablecoins like USD Coin (USDC) and EURC (EURC), those tokens maintain a fixed value but do not generate yield.

Other tokenized assets on Stellar, such as Etherfuse’s Stablebonds, provide returns tied to treasuries, but they function more like bond instruments rather than stablecoins integrated into payments and DeFi.

“Stablecoins unlocked global access to the U.S. dollar. With USDY, we’re taking the next step by bringing U.S. Treasuries onchain in a form that combines stability, liquidity, and yield,” said Ian De Bode, Chief Strategy Officer at Ondo Finance.