Ondo vaults

Ondo Finance is a US tokenisation company whose tokenised Treasury products include USDY and OUSG. Both accrue yield in the token price rather than paying it out. Ondo also offers tokenised US stocks and ETFs to non-US investors through Ondo Global Markets.

USDY. The US Dollar Yield token is a tokenised note issued by Ondo Global Markets (BVI) Limited and secured, depending on issue date, by short-term US Treasuries, iShares Short Treasury Bond ETF shares or bank demand deposits. Its price is updated each business day at a yield rate Ondo sets monthly; rUSDY is a rebasing version that stays at $1. Unlike a stablecoin, USDY gives holders a security interest in its assets, with Ankura Trust as collateral agent. It can be transferred without onboarding, but minting and redeeming require it. US persons may not acquire USDY, and in the UK, EEA, Switzerland, Singapore and other listed jurisdictions only professional or qualified investors can.

OUSG. OUSG (Ondo Short-Term US Government Treasuries) is issued by Ondo I LP and advised by Ondo Capital Management, an SEC-registered adviser. It holds tokenised Treasury and money market funds from managers including State Street, BlackRock, Franklin Templeton and Fidelity, plus bank deposits and USDC, in a mix that changes over time, and updates its NAV each business day. Only onboarded investors who are both accredited investors and qualified purchasers can hold, transfer or redeem it. They can mint and redeem instantly in USDC from $5,000, around the clock, or by next-business-day requests from $100,000 (subscriptions) and $50,000 (redemptions).

Fees and risks. OUSG's 0.15% management fee is waived until 1 January 2027 and its fund expenses are capped at 0.15% a year; USDY holders receive the asset yield net of fees and expenses. Instant OUSG redemptions are capped per investor and in total each day and depend on USDC availability. If USDY's issuer misses a redemption, an event of default requires Ankura Trust to liquidate the portfolio and repay holders, subject to holder approval.