Ondo US Dollar Yield
USDY
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
USDY (Ondo US Dollar Yield) demonstrates robust institutional-grade fundamentals as a premier tokenized real-world asset (RWA) note backed by short-term U.S. Treasuries and bank deposits, managing approximately $2.19B in assets with over 17,000 holders. The asset scores strongly across active development (8.0/10), market presence (8.0/10), and security (8.0/10), bolstered by an extensive multi-firm audit track record (Code4rena, NetherMind, Zokyo, Cyfrin, Halborn, Spearbit/Cantina), bankruptcy-remote Delaware SPV structure, daily third-party attestations, and Ankura Trust Company acting as verification/collateral agent. Tokenomics (7.5/10) are transparent with 1:1 asset backing, elastic supply, and 0% management fees, while team credentials (7.5/10) under Ondo Finance are top-tier. Primary trade-offs and lower scores stem from community governance (5.0/10) and centralization factors: USDY is a permissioned Regulation S security geofenced from U.S. persons, lacking decentralized on-chain holder governance, and subject to administrative transfer freeze capabilities and single-issuer operational risk. No qualifying red-flag events, security breaches, or regulatory enforcements were identified.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Ondo US Dollar Yield (USDY)
USDY (Ondo US Dollar Yield) is a tokenized, yield-bearing dollar note issued by Ondo USDY LLC, an entity established by Ondo Finance. The token operates across multiple blockchain networks, including Ethereum, Solana, Noble, Sui, Aptos, Arbitrum, Mantle, Stellar, Osmosis, and Mantra. Structured as senior secured debt of a bankruptcy-remote Delaware special purpose vehicle, USDY is backed primarily by short-term U.S. Treasuries (approximately 92%) and bank demand deposits (approximately 8%), with Ankura Trust Company acting as the verification and collateral agent.
The token employs an elastic supply mechanism that mints and burns units against collateral without management or performance fees. To provide structural protection for noteholders, the issuer maintains a minimum 103% collateralization ratio supported by a roughly 3% first-loss junior equity buffer, accompanied by daily third-party attestations. In December 2025, the asset was incorporated under the Ondo Global Markets umbrella. It is utilized across decentralized finance integrations, cross-chain settlement, and corporate treasury management, managing approximately $2.19 billion in assets as of August 2026.
USDY is issued under a Regulation S framework, making it unavailable to U.S. persons and subject to jurisdictional compliance controls and transfer restrictions. Token administration is centralized, with yield parameters set directly by Ondo Finance rather than through on-chain USDY token holder governance. Ondo maintains administrative controls over token transfers, including allowlist requirements and asset freeze capabilities. These controls were applied during an April 2026 exploit of the third-party Drift protocol, where stolen USDY tokens were frozen by the issuer. Additionally, while USDY smart contracts have undergone audits from firms including Code4rena, NetherMind, Zokyo, Cyfrin, Halborn, and Spearbit, the legal recourse and collateral agent enforcement mechanisms have not been tested in formal default proceedings.