USDY Token Surpasses $2 Billion in Outstanding Supply, Offers Yield-Bearing Note

Ondo Finance's USDY is not your typical stablecoin. Instead of maintaining a fixed $1.00 peg, its redemption value rises over time as it accrues yield from short-term US Treasuries and bank deposits.

As of late August 2026, USDY had roughly $2.14 billion in tokens outstanding, backed by about $2.19 billion in underlying assets, giving it a collateralization ratio of 105.79%. This is significantly higher than the standard stablecoins like Tether's USDT and Circle's USDC.

USDY is issued as a senior unsecured note by Ondo USDY LLC, and holding the token means owning a debt claim against a portfolio of assets, not a direct share of a Treasury bill or a dollar substitute. The portfolio mix is about 92% short-term US Treasury securities, mostly under six months to maturity, and 8% bank demand deposits.

The yield on USDY is not fixed; it reflects the weighted average return of the Treasury and deposit portfolio, after fees. Ondo's management fee is 0.15% annually, but the company has waived it through January 1, 2027, meaning holders are currently receiving the gross portfolio yield rather than a fee-reduced rate.