Grvt Targets $100M Position in Tokenized Secured Note USDY

Grvt, a decentralized finance (CeDeFi) platform, is partnering with Ondo Finance to build a $100 million position in USDY over the next year. Grvt Earn users will be able to hold and manage USDY on their balance sheet without needing to acquire the token themselves.

The USDY token is backed primarily by short-term U.S. Treasurys, Treasury-based ETF shares, and bank deposits. With about $2.14 billion in assets under management, it's the third-largest such tokenized product. Grvt aims to integrate USDY into its platform, allowing users to earn a 3.5% annual percentage yield (APY) on their holdings.

Grvt CEO Hong Yea stated that Ondo gives them 'a high-quality connection to the U.S. Treasury market.' The partnership reflects the growing trend of firms stepping into onchain fixed-income markets, following products like BlackRock's BUIDL and Franklin Templeton's BENJI money market funds.