Mantle Network’s Ethereum-based L2 project is integrating USD Yield (USDY), a stablecoin from Ondo Finance pegged to the US dollar.
USDY is the first tokenized currency in the world backed by a combination of US Treasuries and bank deposits, and token holders can receive a passive income of 5% annually.
However, this earning function is not available to US residents. Ondo Finance is a leader in the RWA industry, with a digital treasury bonds capitalization of around $160 million since February 2023.
Mantle stated that USDY offers investors “the best protection on the market.”
The token is available for purchase on the Ondo portal or decentralized exchanges supported by Mantle, and the platform is also planning on launching a cross-chain bridge to facilitate the conversion of other stablecoins to USDY.
The asset could be used as a form collateral, derivatives platform, for lending protocols, or simply as a form of payment.
Additionally, a second stablecoin, USDM, issued by Mountain Protocol and licensed in Bermuda, is also backed by US Treasury bonds and brings 5% passive income.