Ondo USDY on Stellar: The Tokenised Treasury Note Explained

USDY by the numbers (October 2026)

Measure	Value	Source
USDY on Stellar	About 467.5M tokens (about $537M)	DefiLlama, 9 Oct 2026
USDY on all chains	About 2.02B tokens ($2.32B)	DefiLlama; Ondo
Stellar share of supply	23.2% (Ethereum 52.8%, Sei 11.2%, Solana 7.8%)	DefiLlama
Price / APY	$1.1490 / 3.75%	ondo.finance, 9 Oct 2026
Stellar accounts with a trustline	3,167	Horizon
USDY held in Soroban contracts	About 5.88M	Horizon
Largest Stellar pool	Aquarius USDY/USDC, about $2.04M of liquidity	Aquarius API

DefiLlama first tracked USDY on Stellar on 17 September 2025, with about 560,000 tokens. Supply stood near 0.9M through the end of 2025, reached about 110M by late February and about 463M by the end of May, and has been flat at about 467.5M since August. rwa.xyz values Ondo's Stellar issuance at $537M too, third among Stellar RWA platforms after Spiko and Franklin Templeton.

How to choose

• You are a non-US investor wanting dollar Treasury yield on Stellar: USDY is the main option open to you without a fund account; mint through Ondo or buy on-chain.
• You are a US investor: USDY is not for you. Franklin Templeton's BENJI is the Stellar fund open to US investors; see BENJI on Stellar.
• You want a $1 token: USDY is not one. Hold USDC and choose a lending or pool yield instead; see USDC yield on Stellar.
• You want to borrow against Treasuries on Stellar: USDY is one of the few RWA tokens with a configured collateral market, but that venue is small.

What USDY is: a note, not a fund

USDY is a tokenised debt note. Ondo's launch post described it as debt issued by Ondo USDY LLC, a US special-purpose vehicle "designed to maximize bankruptcy-remoteness". Ondo's documentation says that entity was folded into its Ondo Stocks umbrella on 15 December 2025. Holders are creditors of the issuer, not shareholders in a fund.

That distinction matters. A fund share, like Spiko's or BENJI, is a claim on a regulated fund's assets. A note is a promise to pay, secured by collateral. Ondo's launch post names Ankura Trust as collateral agent and verification agent for holders, and said USDY would start with an approximately 3% first-loss position funded partly by Ondo. LlamaRisk's overview adds that the collateral agent steps in only if Ondo fails redemptions, collateral drops below a set ratio or the issuer goes bankrupt, and then subject to holder approval.

Collateral has changed over time. Ondo's documentation says that, depending on issuance date, USDY may be secured by short-term US Treasuries, shares of the iShares Short Treasury Bond ETF or bank demand deposits. Ondo's USDY page on 9 October showed the portfolio as mainly short-term Treasuries with some bank deposits. Ondo's own stellar.toml still describes USDY as "a tokenized form of US Yield Bearing Bank Deposits", a reminder that the wording has not kept pace.

How the yield works

USDY pays yield by raising its price rather than sending you more tokens. Ondo targets a rate equal to the yield on the underlying deposits and Treasuries minus a spread for fees, and on 9 October quoted 3.75% APY at a price of $1.1490. A rebasing version, rUSDY, holds $1 and increases balances instead.

Ondo's launch post said it would "target this interest rate at the prevailing yield of the underlying bank deposits and US Treasuries minus a small spread for fees". So the fee is in the spread, not a line item, and the rate follows US short-term rates. If the Federal Reserve cuts, USDY's yield falls with it. The accruing design is why one USDY is worth well above $1; the price is the principal plus all interest since launch.

On a decentralised exchange the price can drift from Ondo's published price. In the Aquarius USDY/USDC pool on 9 October, the reserves were about 894,000 USDY against 1.01M USDC, a ratio of about $1.13 per USDY, slightly under Ondo's $1.1490. That gap is the kind arbitrage normally closes, but only holders who can mint and redeem with Ondo can close it.

Who can buy it, and the restrictions

USDY is offered to non-US individuals and institutions under Regulation S; US persons are excluded. Minting and redeeming require onboarding and KYC with Ondo. On Stellar, Ondo's documentation sets a $5,000 minimum for minting and redeeming, and redemptions go by wire to non-US bank accounts only.

Once issued, Ondo's page describes USDY as freely transferable and lists daily subscriptions and redemptions available 24/7. LlamaRisk's earlier overview recorded a 40–50 day wait between subscribing and receiving tokens at launch; Ondo's current materials no longer mention it, so check the terms when you subscribe. LlamaRisk also notes that several jurisdictions are blocked from minting and redeeming.

On Stellar, the asset's flags tell you what the issuer can do. Horizon shows USDY with auth_revocable and auth_clawback_enabled both set, so Ondo can freeze trustlines and claw tokens back. Secondary buyers on Stellar can hold USDY without KYC, but they cannot redeem with Ondo unless they onboard. Issuer flags are explained in how to issue an asset on Stellar.

Finding the real USDY on Stellar

The genuine USDY on Stellar is issued by GAJMPX5NBOG6TQFPQGRABJEEB2YE7RFRLUKJDZAZGAD5GFX4J7TADAZ6, with home domain ondo.finance and Soroban contract CB3YA656…GAGP. The first page of a Horizon search for the code USDY listed ten issuers on 9 October; several of the others use domains imitating BlackRock, JPMorgan, Grayscale and Coinbase.

Ondo's stellar.toml lists this issuer, names the asset "Ondo US Dollar Yield", and points redemption to app.ondo.finance. Any USDY with another issuer is a different token with no claim on Ondo. Wallets show both side by side, so check the issuer before you trade; wallet choice affects how clearly this is shown.

Where USDY is used on Stellar

USDY's Stellar DeFi footprint is small next to its $537M supply. The main venue is an Aquarius USDY/USDC pool with about $2.04M of liquidity, and XOXNO's published configuration accepts USDY and its LP token as collateral. Horizon counted about 5.88M USDY held in Soroban contracts, around 1% of supply.

Aquarius. The Aquarius API listed two USDY/USDC pools on 9 October: a constant-product pool with about $2.04M of liquidity and AQUA rewards switched on, and a concentrated-liquidity pool with about $14,000. A third, small pool paired USDY with sUSD. How these pools work is in the Aquarius AMM explained.

XOXNO Lending. XOXNO's mainnet configuration on GitHub has an Ondo RWA spoke where USDY is collateral-only at 80% loan-to-value and an 85% liquidation threshold, priced from a RedStone NAV feed with sanity bounds of $1.08–$1.32. The USDY/USDC Aquarius LP token is accepted at 50% LTV. Borrowable assets are USDC, EURC, XLM and PYUSD. XOXNO's whole Stellar deployment held about $129,000 on DefiLlama on 9 October, so capacity is limited; see XOXNO Lending on Stellar.

Most USDY on Stellar, then, is simply held. That fits a note bought for its yield by holders who can redeem directly with the issuer.

The risks to weigh

USDY's risks are issuer and collateral risk (you are a secured creditor of an Ondo vehicle), rate risk on the yield, access risk (only onboarded non-US holders can redeem), issuer controls (freeze and clawback) and, in DeFi, thin liquidity and oracle settings on whichever venue you use.

The structure is designed to limit the first: a bankruptcy-remote issuer, a collateral agent acting for holders and an overcollateralisation buffer at launch. It does not remove it. If you buy USDY on Stellar's secondary market and cannot onboard with Ondo, your only exit is selling, at whatever price the Aquarius pool offers that day. General DeFi risks are covered in DeFi risks.

How USDY fits alongside fund tokens

Stellar's cash-like RWAs come in two legal shapes. Fund shares (Spiko, BENJI) give a claim on regulated fund assets, with permission lists enforced on-chain. Notes (USDY) give a secured claim on an issuer, with more freedom to move once issued. USDY's openness is why it shows up in Aquarius pools and XOXNO's configuration while Spiko's tokens do not. The broader collateral question is covered in RWAs as DeFi collateral.

The takeaway

USDY is a Treasury-backed note whose price accrues daily, and Stellar holds nearly a quarter of it. It suits non-US holders who want dollar yield and can onboard with Ondo to redeem. It is not a $1 stablecoin, it carries issuer and collateral-agent risk rather than fund protections, and the issuer can freeze or claw back. Check the issuer address before every trade.

Sources: DefiLlama stablecoins API (USDY, 9 October 2026); Horizon asset stats for USDY, 9 October 2026; ondo.finance/usdy and ondo.finance stellar.toml; Ondo documentation (USDY basics); Ondo's USDY launch post; LlamaRisk USDY overview; rwa.xyz Stellar network page; Aquarius AMM API; XOXNO rs-lending-xlm mainnet configuration; DefiLlama protocols API. WhaleHub is the publisher of this article and has no relationship with Ondo.