Mantle to add support for RWA-stablecoin USDY

L2-project Mantle Network, built on Ethereum, will integrate the “stablecoin” USD Yield (USDY) from Ondo Finance pegged to the US dollar.

It’s Official: Ondo Finance’s USD Yield ($USDY) is coming to Mantle ?

? We’re thrilled to announce @OndoFinance as a Showcase Partner for RWAs. For the first time, users will be able to access U.S. Treasury yield directly from their wallet on Mantle.https://t.co/BP9qF5sXtr pic.twitter.com/0ONf8Wv3HJ

— Mantle (@0xMantle) September 12, 2023

“USDY — this is the world’s first tokenized currency backed by a combination of U.S. Treasury securities and bank deposits,” the statement said.

Token holders will earn a 5% annual yield. However, for residents of the United States the earning feature will be restricted.

RWA-issuer Ondo Finance is a leader in the RWA-industry, accounting for about 50% of the tokenized securities market. In February 2023 the organization already issued digital treasury bonds, whose current market capitalization stands at around $160 million.

Mantle emphasised that the asset offers “the best protection for investors in the market.”

USDY can be purchased directly via the Ondo portal or through decentralized exchanges on Mantle. The issuer will also launch cross-chain bridge with Ethereum for converting stablecoins. In the future the list of available blockchains will expand.

The new “stablecoin” can be used as collateral for derivatives platforms and lending protocols or simply as a means of payment.

Alongside USDY, news emerged of the launch of the USDM stablecoin, which is also backed by U.S. Treasury securities and yields 5%. The asset is issued by Mountain Protocol, which has already obtained an issuer license in Bermuda.

Earlier, in August, Kaiko analysts forecasted the start of “stablecoin wars”. Analysts pointed to the imbalance in the main pool USDT-USDC on Uniswap V3 and the 3pool on Curve due to the escalation of selling of Tether’s stablecoin.

According to Bernstein researchers, over the next five years the total market capitalization of “stablecoins” will grow from the current $125 billion to $2.8 trillion.