Stellar Network Introduces Yield-Generating Assets for the First Time Through Ondo Finance's USDY Integration
Paragraph 1: The Stellar network has welcomed Ondo Finance's yield-bearing stablecoin, USDY, marking a significant step forward in the platform's journey to become a base layer for financial applications. This integration pairs Stellar's speed with income-generating products, aiming to attract more liquidity and developer activity.
Paragraph 2: For the first time, Stellar balances can now generate yield while remaining liquid. This development opens up new opportunities for users, as they can now earn yield from tokenized U.S. Treasuries while transacting at Stellar's fast and low-cost speeds.
Paragraph 3: The launch of USDY on Stellar creates potential for developers to build new DeFi (Decentralised Finance) products using USDY as a base asset. This could help Stellar compete with other chains that already host tokenized real-world assets.
Paragraph 4: Stellar's CEO, Denelle Dixon, commented that the asset allows wallets and businesses to offer yield directly to users. The integration is aimed at payments, remittances, and treasury management worldwide.
Paragraph 5: Ondo Finance's USDY currently provides around 5.3% APY, designed with protections for institutional-grade investors. The expansion allows both individual and institutional users to tap into permissionless access to yield.
Paragraph 6: The addition of USDY to the Stellar network aligns with the Stellar Development Foundation's mission to make payments faster and more accessible. This move could expand Stellar's utility for payments beyond just moving money.
Paragraph 7: With the Stellar launch, the number of users for USDY could grow as the network opens doors to global users. The integration aims to strengthen Stellar's role as a base layer for financial applications, enhancing the platform’s utility for payments, remittances, and treasury management with low costs and near-instant settlement.
Paragraph 8: A blog post from Ondo Finance confirmed the expansion of USDY to the Stellar network. The institution expanded the Stellar platform by integrating USDY, a yield-bearing stablecoin backed by tokenized U.S. Treasuries. This integration allows global users on Stellar to access permissionless, high-quality yield assets.
Paragraph 9: Users can now collateralize loans, manage onchain treasuries, and hold balances that earn yield without leaving the Stellar network. Crypto users can now earn yield from tokenized U.S. Treasuries while transacting at Stellar's fast and low-cost speeds.
Paragraph 10: The combination of speed and yield could attract new users to the Stellar ecosystem. As of now, USDY has already attracted over $650M in total value locked across nine blockchains, indicating a promising future for this integration.
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