Ondo Finance has partnered with LayerZero to enhance its yield-bearing stablecoin, the Ondo US Dollar Yield Token (USDY), making it fungible across multiple blockchain networks including Ethereum, Mantle, and Arbitrum. This initiative aims to improve accessibility for users to earn an approximate 4.9% annual percentage return (APR) on their investments. Each USDY token is backed by bank deposits and short-term Treasury bills. With a total value locked (TVL) exceeding $450 million, USDY is accessible on eight blockchain networks and is designed to allow seamless token transfers without the traditional complexities of asset wrapping or liquidity pools. The collaboration reflects a booming market for tokenized Treasury products, which has seen a threefold increase in capitalization this year, now totaling around $2.5 billion. Notably, USDY is not available to U.S. investors and has a transfer restriction of 40 days after acquisition.

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