STBL.com, the stablecoin protocol, announced a strategic collaboration with the real-world asset (RWA) tokenization platform, Ondo Finance, on Oct. 10. As per the agreement, the protocol will be able to mint up to $50 million in USST backed by Ondo’s USDY.
Before we venture further, it’s important that we first understand what tokenization and stablecoin are.
Tokenization is the process of using blockchain technology to convert assets like cash or treasuries into tokens, enabling global, 24‑7 access and automated financial services.
For instance, Ondo’s USDY is a token that digitally represents U.S. Treasuries. Since the U.S. Treasuries deliver yields, USDY — being backed by these assets — also delivers yields.
A stablecoin is a type of cryptocurrency that — unlike traditionally volatile cryptocurrencies like Bitcoin and Ethereum — attempts to stabilize its value by being pegged to a fiat currency like the U.S. dollar or a commodity like gold.
For instance, USST is a stablecoin backed by tokenized RWAs, such as Ondo’s USDY and OUSG and BlackRock’s BUIDL.
The latest collaboration demonstrates the evolving trend in stablecoin reserves in which institutional-grade tokenized assets can play an increasingly important role in the future.
Ondo Finance’s chief strategy officer Ian De Bode said, “We’re excited that Ondo USDY is set to drive STBL’s growth, demonstrating how institutional-grade, tokenized yield-bearing reserves underpin the future of the digital asset ecosystem.”
STBL co-founder and CEO Avtar Sehra said, “Stablecoin design has to catch up with reality: the world is moving to tokenized reserves… Ondo’s USDY brings the right ingredients – quality collateral, clear governance, and strong controls – so USST can scale utility without diluting stability.”
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STBL co-founder and chairman Reeve Collins said, “The first era of stablecoins concentrated value with issuers. STBL flips that script so the benefits of the collateral flow back to those who provide it.
STBL to leverage Ondo’s USDY as primary collateral to mint up to $50M USST
