USDY Builds Momentum in Solana's DeFi Ecosystem

Ondo Finance's USDY has established itself as a key player in Solana's decentralized finance ecosystem. The yield-bearing token is used for trading collateral, lending, and transfers between blockchains. Unlike traditional stablecoins, USDY offers exposure to short-term U.S. Treasuries and bank-deposit assets through its tokenized note format.

The native deployment of USDY on Solana was announced in December 2023, with planned availability through platforms such as Orca and Raydium. Ondo launched a bridge connecting Solana with Ethereum, Arbitrum, and Mantle on May 1, 2025, using the LayerZero burn-and-mint process for 1-to-1 transfers.

USDY was also made available as collateral on Drift Protocol for margin trading and perpetual contracts. This move significantly enhanced capital efficiency for traders on Solana, according to Justin Schmidt, President and Chief Operating Officer of Ondo Finance.