Ondo Unlocks USDY Interoperability Between Ethereum, Mantle, and Arbitrum with LayerZero’s OFT Standard.

Ondo Finance has developed an institutional grade bridging solution for tokenized RWAs, powered by LayerZero, enabling crosschain composability for their US treasuries products.Starting with USDY, its flagship yield-bearing RWA asset, Ondo will unlock full interoperability across Ethereum, Mantle, and Arbitrum through LayerZero’s Omnichain Fungible Token (OFT) Standard. This integration allows users to seamlessly access Ondo’s tokenized US Treasuries products across multiple blockchain ecosystems without needing to mint new tokens or swap assets between chains.

With interoperability unlocked, token holders can leverage the yield-bearing capabilities of US Treasuries while maintaining liquidity across a broad range of DeFi platforms. Initially supported on Ethereum, Mantle, and Arbitrum, more networks will be added as Ondo’s tokenized US treasuries products continue to grow, providing compelling alternatives to traditional stablecoins like USDC and USDT.

Key Features of USDY’s Omnichain Expansion:

• Seamless Transfers: USDY is now fully transferable across Ethereum, Mantle, and Arbitrum using Stargate Finance, the largest bridge in crypto, or Ondo’s own native bridge. Users can move USDY between chains without friction, preserving liquidity and maximizing its utility.
• Broader Composability: USDY’s integration with LayerZero’s OFT Standard, which extends ERC-20 tokens to new chains, enables it to be more widely available and usable across DeFi platforms, allowing for flexible onchain interactions similar to other stablecoins like USDC and USDT.
• Institutional-Grade Security: The use of DVNs, including verification by Polyhedra Network, Axelar, and LayerZero Labs, provides a highly secure and adaptable environment for USDY transfers, ensuring message integrity and preventing risks like censorship or downtime.

Institutional Grade Security Taking RWAs Omnichain

A key aspect of this integration is a focus on institutional-grade security. With LayerZero, security is application-owned, and Ondo is utilizing a robust setup of three DVNs to verify and secure USDY transfers: Polyhedra Network, Axelar, and LayerZero Labs. This multi-layered approach creates diverse verification layers that minimize the risk of any single point of failure and offer robust, redundant, and adaptable security.LayerZero allows Ondo to tailor its security model by selecting trusted verifiers, ensuring both liveness and censorship resistance for USDY transactions. With these verifiers in place, Ondo delivers the highest levels of security for USDY transfers across all supported blockchains, setting a new standard for omnichain institutional-grade assets.

This integration with Ondo’s meticulously selected DVN list is what they are calling Multi-Message Aggregation (MMA), aggregating attestations from a POS blockchain (Axelar), ZK prover (Polyhedra), and the LayerZero Labs DVN. Ondo has plans to develop their own secure DVN as well, ensuring liveness and censorship resistance for the asset in perpetuity. Furthermore, Ondo retains the ability to re-configure their DVN selection at any time.Ondo’s MMA security stack, requiring verification of each USDY transfer from Axelar, Polyhedra, LayerZero Labs, and Ondo DVNs.

Ondo’s security stack

What is USDY?

USDY is the world’s first tokenized note secured by a portfolio of US Treasuries designed for bankruptcy-remoteness. It is accessible to non-US individual and institutional investors and is designed to combine the accessibility of stablecoins with US dollar-denominated yield. Key features include:

• Broad Accessibility: Tokenized loan that can trade globally in secondary markets to non-US investors.
• Yield-Bearing: Accrues a variable interest rate, adjusted monthly by the issuer. Yield accrues in the form of a redemption value.
• High-Quality Collateral: Secured by a portfolio of short-term US Treasuries.
• Regulatory Compliance: Issued under a continuous Reg S offering to offshore investors with best practices KYC/AML/CFT procedures.
• Bankruptcy-Remote: Assets designed to be ring-fenced from a hypothetical Ondo bankruptcy.

As USDY continues to go live across more blockchain economies, the vision is for USDY to not only be a yield-bearing stablecoin but to also become a widely flexible and composable asset across a range of decentralized applications (dApps) and financial platforms, as a vehicle of payment or financial strategy. With LayerZero’s omnichain capabilities, USDY is poised to unlock new possibilities for around the idea of a stablecoin alternative, creating a highly flexible tool to maximize the utility of digital assets.

“Institutional-grade assets demand secure and reliable interoperability to fully unlock the potential of blockchain technology,” said Nathan Allman, CEO of Ondo Finance. “Our partnership with LayerZero ensures seamless cross-chain transactions, providing the robust infrastructure necessary for institutions to confidently make their tokenized assets accessible omnichain across interconnected blockchains.”

For more information on USDY and the omnichain expansion, visit www.ondofinance.com.

Why LayerZero?

LayerZero has become the leading omnichain protocol, with over 135 million messages transmitted across 90+ blockchains. By adopting LayerZero’s Omnichain Fungible Token Standard, Ondo is addressing the problem of liquidity fragmentation for USDY, allowing it to operate across multiple chains without the need for wrapping or token exchanges.

This omnichain capability ensures that USDY can compete in terms of accessibility with market leaders like USDC and USDT, offering a native-yield alternative that can one day be utilized anywhere stablecoins are accepted. LayerZero’s modular security features also mean that USDY transferring is very secure, providing users with peace of mind as they transfer and use their assets across different blockchain environments.

“Ondo shows how institutional assets like USDY can operate securely and seamlessly across blockchains,” said Bryan Pellegrino, Co-founder and CEO of LayerZero Labs. “Using LayerZero and the OFT Standard, which enables tokens to exist on multiple blockchains at once, Ondo built a solution that combines security, flexibility, and composability, making tokenized real-world assets truly omnichain and ready to integrate into DeFi at scale.”

About Ondo Finance

Ondo Finance is a leading innovator in the tokenization of real-world assets, focused on building secure and scalable solutions for institutional investors. By pioneering institutional-grade bridging infrastructure, Ondo is working toward a global market where tokenized securities can be seamlessly and securely transferred across blockchain ecosystems.

About LayerZero

LayerZero is an interoperability protocol that connects blockchains (90+ and counting), allowing developers to build seamless omnichain applications, tokens, and experiences. The protocol relies on immutable onchain endpoints, a configurable security stack, and a permissionless set of executors to transfer censorship-resistant messages between chains.

⚠️ NOTE: USDY is not, and may not be, offered, sold, or otherwise made available in the US or to US persons. USDY has not been registered under the US Securities Act (“Act”) or pursuant to securities laws of any other jurisdiction, and may not be offered, sold or otherwise transferred in the US or to US persons unless registered under the Act or an exemption or exclusion from the registration requirements thereof is available. Additional restrictions may apply.Nothing herein constitutes any offer to sell, or any solicitation of an offer to buy, USDY. Acquiring USDY involves risks. A USDY holder may incur losses, including total loss of their funding to acquire USDY tokens. Past performance is not an indication of future results.Ondo does not endorse, Ondo does not make any representation or warranty whatsoever (express or implied, including but not limited to any warranty of merchantability, fitness for a particular purpose, or non-infringement) regarding, and ONDO SHALL NOT HAVE ANY LIABILITY WHATSOEVER WITH RESPECT TO ANYONE’S USE OF, any third-party products, services, or technologies referenced herein. Additional terms apply. Visit ondo.finance/usdy for details.