What to know:
USDY, backed by U.S. Treasuries and deposits, is now the first tokenized Treasury asset live on Sei.
The integration gives global users access to yield-bearing dollars on a fast, low-latency Layer-1 blockchain.
Developers can use USDY as composable collateral for lending, trading, and DeFi financial products.
Ondo Finance’s flagship RWA token USDY is now officially live on Sei Network, marking a major milestone in the ongoing integration of traditional financial instruments with DeFi.
USDY is a tokenized note backed by short-term U.S. Treasury securities and bank deposits, was designed to combine the safety and yield-bearing characteristics of Treasuries with the accessibility and composability of blockchain assets. This integration brings one of the largest tokenized treasury products, with over $680 million in TVL, directly onto Sei’s high-performance Layer-1 blockchain.
Institutional-Grade RWAs on Sei
Sei Network, known for its ultra-fast transaction speeds, low latency, and specialized architecture for financial applications, now supports USDY as the first tokenized Treasury asset on its chain. This move is seen as a pivotal step in extending Sei’s capabilities beyond traditional native tokens to include institutional-grade RWAs.
“By bringing USDY to Sei, we’re combining an institutional-grade product with a next-generation execution layer, enabling capital-efficient use cases for protocols, developers, and users alike,” said Nathan Allman, Founder and CEO of Ondo Finance.
What USDY Brings to the Ecosystem
For everyday users and institutions, the launch unlocks several important advantages:
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Yield-bearing dollar exposure: Users can hold USDY to earn yield backed by short-term U.S. Treasuries while maintaining price stability.
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Global access: Non-U.S. individuals and institutions can access tokenized U.S. Treasuries directly on Sei without relying on traditional intermediaries.
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Fast execution: Sei’s high-speed network enables efficient transactions without sacrificing reliability.
Ondo Finance has clarified that USDY tokens are not registered under the U.S. Securities Act of 1933 or the securities laws of other jurisdictions, and are not available for sale in the U.S. or to U.S. persons unless properly registered or exempt. In certain regions such as the European Economic Area, the UK, and Switzerland, USDY is offered only to qualified or professional investors, subject to local regulations.
New Opportunities for Developers
The integration also opens up powerful possibilities for developers building on Sei:
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DeFi composability: USDY can plug directly into Sei-based DeFi applications, enabling advanced yield strategies and financial products.
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Reliable collateral: With institutional-grade backing, USDY can be used as trusted collateral for lending, trading, and liquidity provision.
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Easy integration: Builders can quickly add USDY into their protocols as a treasury asset, yield product, or core financial primitive.
This makes USDY a flexible building block for creating new financial tools that blend traditional finance with decentralized systems. Ian De Bode, President at Ondo Finance, highlighted the broader vision behind the launch: “Expanding Ondo USDY to Sei’s high-performance blockchain broadens global access to tokenized U.S. Treasuries. Everyone from individuals to enterprises can now leverage a high-quality, sustainable, and stable source of yield on Sei to power a wide range of use cases across the DeFi ecosystem.”
Justin Barlow, Executive Director at the Sei Development Foundation, also emphasized the importance of the integration: “Introducing Ondo USDY to the speed and throughput of Sei will give users access to a high-quality, Treasury-backed asset that can be used for borrowing and lending, cash management, cross-border payments, and more. This is another key step in bridging the gap between DeFi and traditional finance.”
Final Thoughts
The Sei launch is part of USDY’s broader multichain growth strategy. By expanding across leading blockchains, Ondo is making tokenized real-world yield more accessible to users around the world. Each new integration strengthens USDY’s role as a core RWA primitive in DeFi—bringing traditional financial value into decentralized ecosystems in a simple, usable form.
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