In an announcement published by crypto.news on August 27, Ondo Finance and Arbitrum said that the tokenized debt instrument USDY has been launched on Ethereum’s L2 scaling solution. Ondo U.S. Dollar Yield is a yield asset backed by short-term U.S. Treasury bonds that currently accounts for $347 million in market value. According to RWA.xyz, USDY is traded on Ethereum and Solana, among other blockchain networks.

With its launch on Arbitrum, USDY is now available on another major decentralized finance platform. In an announcement on August 27, the Arbitrum Foundation said that Ondo’s tokenized treasury asset now offers its real-world investment to users on Arbitrum’s leading DeFi protocols Camelot and Dolomite.

USDY holders earn 5.35% annual interest and will allow non-US investors on Arbitrum — both retail and institutional — to access the benefits of stablecoins, attractive annual yields, and institutional-grade investor protection. Ondo’s launch of USDY on Arbitrum follows ArbitrumDAO’s move to diversify six million ARB tokens into a tokenized asset on Ondo. The program aims to support the adoption of RWA on Arbitrum, with ARB staked in Ondo’s USDY representing 17% of Arbitrum’s total $36 billion treasury investment.

Image: Ondo Finance Blog