TL;DR
- Ondo Finance launched USDY on the Sei network. It’s the first tokenized Treasury-backed asset to operate on this high-speed blockchain.
- USDY offers a 4.25% annual yield and can be used as collateral, payment method, or building block for financial products.
- Sei aims to compete with Ethereum and Solana by attracting institutional capital through infrastructure built for real-time finance.
Ondo Finance has launched its USDY token on the Sei network, a layer 1 blockchain optimized for fast transactions and composable financial architecture.
This marks the first time a tokenized asset backed by U.S. Treasury bills is integrated into the Sei network. Real-world assets are starting to take center stage within the crypto ecosystem. USDY is structured as a debt instrument backed by short-term Treasuries and bank deposits, offering a 4.25% annual return. It positions itself as a regulated, yield-bearing alternative to traditional stablecoins.
The addition of USDY plays a strategic role for Sei, which is aiming to attract institutional-grade financial products and become infrastructure for high-performance trading. Its ability to handle thousands of transactions per second with low latency and near-instant finality allows seamless integration of complex financial tools. USDY can be used as treasury collateral, a payment layer, or a base component for structured products within Sei-native applications.
Sei Joins the Tokenized Asset Race
The tokenized asset market expanded rapidly in 2025, driven by the entry of traditional asset managers like BlackRock and Franklin Templeton. According to DeFiLlama, the total value locked in real-world assets surpassed $13 billion—four times higher than the previous year. Ondo is targeting investors seeking instruments that combine yield, liquidity, and regulatory compliance.
There is growing anticipation around the approval of a stablecoin regulatory framework in the United States. Such developments could accelerate adoption of products like USDY among institutional investors. At the same time, Sei is entering direct competition with networks like Ethereum and Solana, both aiming to capture volume from the growing market of tokenized financial assets. While Ethereum maintains its lead in volume, newer chains are pushing forward with architectures purpose-built for real-time finance.
Through this launch, Ondo expands the distribution of its token, while Sei adds a crucial component for attracting institutional finance applications. The convergence of advanced infrastructure and regulated financial instruments is becoming a key pillar of today’s DeFi ecosystem
