Ondo Finance Launches USDY, a Tokenized U.S. Treasury Product, on the Sei Network
- Ondo Finance has launched USDY, a token backed by U.S. Treasury bonds and bank deposits, on the Sei Network.
- The SEI token price has surged 114.9% in the past month, pushing it to 56th in market cap rankings, according to Messari.
Ondo Finance has introduced USDY (United States Dollar Yield), a tokenized product backed by short-term U.S. Treasury bonds and bank deposits, to the Sei Network. Announced on July 17, this marks the first instance of a tokenized U.S. Treasury note on Sei, enabling users to access interest-bearing, institutional-grade assets directly on-chain.
The Sei Network, known for its ultra-fast Layer 1 infrastructure, has recently seen significant growth. According to Messari, the SEI token price surged 114.9% over the past month, placing it 56th in market capitalization rankings. Sei is capable of processing thousands of transactions per second with minimal fees, making it particularly suited for financial applications.
Nathan Allman, founder and CEO of Ondo Finance, noted,
“Sei is building one of the fastest and most performant environments in DeFi.” He added, “Bringing USDY onto Sei combines an institutional-grade product with a next-generation execution layer to enable capital-efficient use cases for protocols, developers and users.”
Real-World Applications of USDY on Sei
With USDY’s integration, several new use cases emerge:
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- Treasury and Liquidity Management: DAOs and DeFi protocols can store idle funds in interest-earning assets, improving capital efficiency.
- Stablecoin Alternative: USDY offers a compliant, yield-bearing alternative to traditional stablecoins on Sei's native applications.
- DeFi Composability: Money markets, DEXs, and structured products can leverage USDY to build real-world asset-backed yield strategies.
Justin Barlow, executive director of the Sei Development Foundation, highlighted Sei’s capabilities, stating that its infrastructure allows for “near-instant settlement and parallel processing.”
Sei has recently gained traction among institutions and regulators. In June 2025, the state of Wyoming selected Sei as a candidate for a state-issued stablecoin. Additionally, Circle integrated USDC with Sei’s Cross-Chain Transfer Protocol (CCTP) in July 2025, enabling seamless USDC transfers across multiple blockchains.
Edited by Harshajit Sarmah
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