Key Takeaways Ondo Finance will deploy USDY, a lucrative token of short-term American Treasuries and bank deposits, to print 50M in USST stablecoins. Under the next-generation reserve architecture as introduced The post STBL Partnered with Ondo Finance to Deploy $50M Stablecoin Minting appeared first on CryptoNinjas.Key Takeaways Ondo Finance will deploy USDY, a lucrative token of short-term American Treasuries and bank deposits, to print 50M in USST stablecoins. Under the next-generation reserve architecture as introduced The post STBL Partnered with Ondo Finance to Deploy $50M Stablecoin Minting appeared first on CryptoNinjas.

STBL Partnered with Ondo Finance to Deploy $50M Stablecoin Minting

2025/10/12 01:20

Key Takeaways

  • Ondo Finance will deploy USDY, a lucrative token of short-term American Treasuries and bank deposits, to print 50M in USST stablecoins.
  • Under the next-generation reserve architecture as introduced by STBL, USDY becomes the main collateral, and asset tokenization of institutional-quality assets is deposited to DeFi infrastructure.
  • A method to split the principal and yield of STBL is the dual-token system which ensures the observance of regulations, transparency, and scalable issuance of stablecoins.

STBL has made a move in the future of crypto-collateralized assets by declaring a strategic partnership with Ondo Finance to mint up to $50 million of its USST stablecoin in USDY, the tokenized U.S. Treasury item of Ondo. The move marks a key shift in stablecoin architecture, integrating real-world assets with decentralized minting systems.

Tokenized Treasury Enter the Stablecoin Core

The decision of USDY to be the main collateral of USST at STBL is not a technical adjustment, but rather a redefinition of what is supporting the current stablecoins.

USDY is a tokenized yield-bearing asset, collateralized by short-term U.S. Treasuries and bank deposits. Unlike stablecoins backed by opaque commercial paper or centralized bank control, USDY provides first-priority security interest, held in custody by independent agents. This creates a strong protection layer for users and institutions.

STBL is developing a reserve model congruent to the compliance-driven requirements of market expectations, and the pressure on trustless infrastructure of the DeFi economy, and USDY will help it meet that demand. “Stablecoin design has to catch up with reality: The world is moving to tokenized reserves,” said Dr. Avtar Sehra, STBL Co-Founder and CEO.

Institutional-grade controls, governance transparency, and investor safeguards put USDY in serious contention as the gold standard for DeFi collateral. The partnership also signals growing interest in real-world asset (RWA) integration in decentralized ecosystems.

stbl-ondo-finance

Read More: Ondo Global Markets Debuts with 100+ Tokenized U.S. Stocks in Historic $70M Launch Surge

In the Reserve Structure of STBL: Built for Regulation and Scale

The main item of the innovation at STBL is its dual-token system, a compliance-first design that segregates yield and liquidity. It consists of:

USST – The Payment Token

  • Non yielding, fully collateralized (USY).
  • Freely movable and in line with payment referrals.
  • Payments and settlements as the primary payment and settlement unit.

YLD – The Yield Token

  • Reserves USDY-collateralized reserves Owns the economic rights to yield.
  • Only made available to eligible holders in certain regulatory jurisdictions.
  • Keeps away payment rails and activities that maintain a separation between them, removing regulatory overlaps.

This type of separation is not merely consistent with new regulatory strategies (especially in the U.S. and EU), but one that helps institutions to reap an exposure to compliant yields without affecting the utility or transferability of the underlying stablecoin.

Governance & Compliance

The reserve model of STBL is not merely collateral-based, but is meant to live and be responsive and composable in real-time. Key features of the model include:

  • Dynamic mint-and-burn mechanics maintain USST’s peg under market pressure
  • On-chain governance controls collateral haircuts, fee routing, and redemption spreads
  • Directly integrated KYC/AML compliance through issuer and custodian allowlists
  • Permissionless use of USST across DeFi, while yield remains gated and compliant

This setup enables institutions to participate in DeFi with full regulatory clarity, which is critical as global regulators increase scrutiny on stablecoins. The Chief Strategy Officer of USDY, Ian De Bode, says that the investor protection, composability, and permissionless feature of USDY renders it the most suitable type of collateral to choose in the next round of the stablecoin innovation.

stbl

A Trend Toward Real-World Integration in DeFi

The STBL-Ondo alliance belongs to a larger trend in the industry: introducing real-life financial instruments to decentralized systems. The use of tokenized treasury products such as USDY is rapidly spreading, particularly as DeFi protocols look for high-quality collateral that is stable due to increased regulatory rigor around the world.

DeFiLlama reports that the growth of the TVL (Total Value Locked) of real-world asset-backed DeFi protocols has increased more than 500% per year, with Treasury-backed tokens taking up an increasing proportion of this figure.

This partnership is reminiscent of other such actions in the crypto world. MakerDAO as an example has invested billions in the U.S. Treasuries over the short term via vehicles. Similarly Franklin Templeton and BlackRock have also joined the tokenization fray, indicating institutional need to have compliant digital yield solutions.

Read More: Jupiter to Launch JupUSD Stablecoin, Powered by Ethena Labs

The post STBL Partnered with Ondo Finance to Deploy $50M Stablecoin Minting appeared first on CryptoNinjas.

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