USDY Launches on Tempo, Bringing Institutional-Grade Yield to Payment Flows

Ondo Finance has launched its U.S. Dollar Yield Token, USDY, on Tempo, a payments-focused Layer-1 blockchain incubated by Stripe and Paradigm. This launch lets businesses using Tempo earn Treasury-backed yield on dollars sitting idle in wallets or payment flows.

Historically, the yield from idle float went to banks and payment processors instead of the businesses holding the dollars. USDY changes this setup for businesses building on Tempo, allowing them to earn yield directly on their idle balances.

Tempo's architecture was built specifically for moving money at a global scale, settling payments in under a second and charging fees in USD stablecoins. This keeps costs low and predictable for businesses using payment flows.