Ondo Finance has launched its USDY token—a yield-bearing asset backed by U.S. Treasuries—on the Sei Network, marking the first tokenized Treasury bill integration on the high-speed Layer 1 blockchain. The deployment enables global, non-U.S. investors to access a 4.25% annual yield through exposure to short-term Treasuries and bank demand deposits, combining traditional finance stability with blockchain efficiency.
USDY, which holds over $680 million in total value locked (TVL) across multiple chains, offers fractional ownership, 24/7 trading, and on-chain transparency. Sei's infrastructure—featuring 400-millisecond block finality, parallel execution, and scalability—provides the technical foundation for institutional-grade asset tokenization. This aligns with Sei's 2025 strategy to position itself as a hub for real-world assets (RWA), a market valued at $13 billion and projected for trillion-dollar growth.
Ondo Finance, managing $1.4 billion in assets, reinforces its RWA leadership with this move. The firm recently acquired blockchain developer Strangelove to bolster integrations and plans to obtain broker-dealer licensing via Oasis Pro for tokenized equities. Meanwhile, Sei has seen 821% year-over-year TVL growth in 2025, surpassing $670 million, driven by its Cosmos SDK-based architecture and EVM compatibility.
The collaboration enhances accessibility to low-volatility yields in DeFi, diversifies crypto portfolios, and validates tokenization's role in merging TradFi with blockchain. Challenges include evolving regulations and smart contract risks, but the partnership signals accelerating RWA adoption.