Non-U.S. residents can now access yield-bearing USDY on the Aptos blockchain.
The Aptos Foundation has announced the launch of Ondo Finance’s USDY, a yield-bearing stablecoin backed by U.S. Treasuries, on the Aptos blockchain. This new digital asset will be accessible to non-U.S. residents through the Aptos platform. It’s important to note that USDY has not been registered as a security in the United States.
In their announcement, the Aptos Foundation highlighted the advantages of stablecoins, such as serving underserved communities and democratizing finance.
Interestingly, stablecoin issuers and other companies in the crypto industry are becoming significant buyers of US government debt. For instance, Tether, which backs its stablecoin USDT with US dollar reserves and US Treasury bills, disclosed in 2023 that it held $72.5 billion in US Treasury bills.
The potential benefits of stablecoins for the US dollar have also caught the attention of former US lawmaker Paul Ryan. The former Speaker of the House emphasized how dollar-pegged stablecoins could create demand for the dollar, potentially extending its dominance for decades amid global moves to reduce reliance on it for international trade.
In July, Binance.US received regulatory approval to invest customer funds in US Treasury bills, with the condition that they use a third-party custodian and not reinvest the funds into Binance.US or related business operations.
A $3 billion market opportunity by the end of 2024?
Research strategist Tom Wan predicts that the tokenized US Treasury market will reach $3 billion by the end of 2024. He believes that tokenized Treasury offerings from BlackRock and Securitize will attract more capital to this market.
Wan noted that BlackRock’s Institutional Digital Liquidity Fund (BUIDL) is already the world’s largest tokenized Treasury investment fund.
