The world of decentralized finance (DeFi) is evolving at breakneck speed, and two powerful forces—Ondo Finance and Sui—are converging to redefine how real-world assets (RWAs) are accessed, managed, and scaled on-chain. With Ondo’s leading tokenized US Treasury product, USDY, now natively integrated into the Sui blockchain, this strategic partnership marks a pivotal moment in the mainstream adoption of institutional-grade financial instruments.
This collaboration isn’t just about technology—it’s about accessibility, scalability, and the democratization of yield-generating assets for a global audience.
A New Era for Real World Asset Tokenization
Real World Asset (RWA) tokenization has emerged as one of the most promising frontiers in blockchain innovation. By bridging traditional finance with decentralized ecosystems, RWA platforms like Ondo Finance unlock previously inaccessible opportunities for retail and institutional investors alike.
Ondo’s flagship product, USDY, represents a new class of digital asset: a tokenized cash equivalent backed by short-duration US Treasuries. Unlike traditional stablecoins, where the issuer captures most of the yield, USDY passes nearly all returns directly to holders—offering a transparent, yield-bearing alternative that aligns incentives across users and protocols.
Now, with its native deployment on Sui, USDY gains access to one of the fastest-growing Layer 1 blockchains in DeFi today.
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Why Sui? Speed, Scalability, and Innovation
Launched less than a year ago, Sui has rapidly ascended to become a top 10 DeFi blockchain, driven by explosive growth in Total Value Locked (TVL)—a staggering 1000% increase over just four months. This meteoric rise reflects more than market momentum; it underscores a fundamental shift toward high-performance infrastructure capable of supporting complex financial applications at scale.
Sui’s breakthrough lies in its object-centric architecture, built on the Move programming language. Unlike account-based models used by many blockchains, Sui treats data as individual objects that can be processed in parallel. This enables:
- Sub-second transaction finality
- Massive throughput without congestion
- Low-cost transactions, even during peak usage
- Horizontally scalable storage and compute
These features make Sui an ideal environment for deploying capital-efficient, yield-generating assets like USDY—where speed, reliability, and cost matter most.
Aligning Missions: Democratizing Access to Institutional Finance
At their core, both Ondo Finance and Sui share a common vision: making sophisticated financial tools accessible to everyone, everywhere.
Ondo’s mission is to bring institutional-grade investment products on-chain—starting with low-risk, high-quality yield from US Treasuries. By tokenizing these assets, Ondo removes traditional barriers such as minimum investments, geographic restrictions, and opaque fee structures.
Sui complements this vision by providing the technical foundation needed to scale these innovations globally. Its high-throughput design ensures that even as millions engage with tokenized RWAs, the network remains fast, affordable, and resilient.
Nathan Allman, Founder and CEO of Ondo Finance, emphasized the synergy:
“Sui's remarkable ascent in the DeFi space represents a realization of the promises of blockchain technology and a unique opportunity for us to help contribute to their on-chain financial ecosystem. Our collaboration with Sui broadens Ondo's reach and introduces Ondo’s reliable, yield-generating assets to a broader audience, fostering innovation and stability across the ecosystem.”
Empowering Builders and Users Across the Sui Ecosystem
The integration of USDY into Sui’s DeFi landscape goes beyond simple asset availability—it unlocks new functionality for developers and end users alike.
With USDY now available natively:
- Developers can build lending protocols, derivatives platforms, and structured products using a stable, yield-bearing base asset.
- Users gain access to a secure store of value that appreciates over time through daily yield accrual.
- Liquidity providers benefit from deeper pools and enhanced capital efficiency across DEXs and money markets.
Greg Siourounis, Managing Director of the Sui Foundation, highlighted the transformative potential:
“Ondo is an amazing addition to the Sui ecosystem, providing a native alternative to stablecoins that will unlock new opportunities for Sui’s builders and developers and essential new functionality for the users of their applications.”
This integration also paves the way for future RWA expansions—from corporate bonds to private credit—positioning Sui as a premier destination for on-chain finance innovation.
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FAQ: Your Questions About USDY on Sui Answered
Q: What is USDY?
A: USDY is a tokenized US Treasury yield product issued by Ondo Finance. It offers holders exposure to daily accruing yields from short-duration US Treasury securities—providing a low-risk, yield-generating alternative to traditional stablecoins.
Q: Is USDY a stablecoin?
A: While USDY maintains price stability similar to stablecoins, it is not a stablecoin. It is a tokenized cash equivalent backed by real-world US Treasury bills, with yields distributed directly to token holders.
Q: Can I use USDY in DeFi protocols on Sui?
A: Yes. USDY is being integrated into leading DeFi applications on Sui, including lending platforms, decentralized exchanges (DEXs), and yield aggregators—enabling seamless participation in the growing ecosystem.
Q: Why choose USDY over other yield-bearing assets?
A: USDY stands out due to its transparency, low risk profile, and direct yield distribution. Backed by US Treasuries—a globally trusted safe-haven asset—it combines security with consistent returns.
Q: Are there any geographic restrictions for using USDY?
A: Yes. USDY tokens are not available to US persons or within the United States due to regulatory requirements. They have not been registered under the Securities Act of 1933 and may only be offered where exemptions apply.
Q: How does Sui support high-performance DeFi applications?
A: Through its object-centric model and parallel execution engine, Sui achieves sub-second finality and massive scalability—making it uniquely suited for high-frequency financial operations like trading, lending, and real-time yield distribution.
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The Future of On-Chain Finance Starts Here
This partnership between Ondo Finance and Sui signals more than a technical integration—it represents a broader movement toward a more inclusive, efficient, and transparent financial system.
As real-world assets continue to migrate on-chain, platforms that combine security, scalability, and user empowerment will lead the next wave of adoption. With USDY now live on Sui, users and developers have a powerful new tool to build resilient financial applications that serve global markets.
Ondo remains committed to pioneering RWA innovation while expanding into high-performance ecosystems like Sui. Expect further integrations, enhanced product offerings, and deeper community engagement as both teams work toward a shared goal: accessible finance for all.
Core Keywords:
- Tokenized US Treasuries
- Real World Assets (RWA)
- USDY
- Sui blockchain
- DeFi innovation
- Yield-generating assets
- Institutional-grade finance
- Blockchain scalability