USDY Basics

What is USDY?

USDY (US Dollar Yield Token) is a tokenized note formerly issued by Ondo USDY LLC, which as of December 15, 2025 has been folded into the Ondo Global Markets umbrella. Depending on the issuance date, USDY may be secured by either short-term US Treasuries, shares of iShares Short Treasury Bond ETF, or bank demand deposits. USDY is accessible to qualifying non-US individual and institutional investors and is designed to combine the accessibility of a stablecoin with high-quality, US dollar-denominated yield.

USDY comes in two versions: an “accumulating” version (USDY) whose per-token price increases as yield accrues, and a “rebasing” version (rUSDY) whose price remains at US$1.00. Whereas the price of USDY tokens increases as the value of the underlying assets increase, with rUSDY you simply receive more rUSDY in your wallet; in effect the yield on the underlying assets accrues in the form of additional rUSDY tokens. For example, if you acquired 100 rUSDY tokens when the price per token of USDY was $1.00 – and then the price per token of USDY increased to US$1.01, the price per token of rUSDY would remain at $1.00, but your wallet would now hold 101 rUSDY tokens. This ‘rebasing’ happens automatically when the USDY price is updated each business day.

You can easily and instantly convert back and forth between USDY and rUSDY on our website at any time.

How does it work?

I. Onboarding

To onboard you must be eligible and complete our Know Your Customer (KYC) process, provide us with the wallet address where you would like to receive your Tokens, and sign the appropriate paperwork.

II. Investing

Once your onboarding is completed, you will receive an email stating when you are eligible to invest. From then on, you can deposit USDC at any time. (For deposits of $100K plus, USD bank wires are also possible. Contact us for more information.) You will start earning interest as soon as your transaction is processed.

Redeeming

Note that to comply with applicable US laws and regulations, Ondo USDY LLC can only redeem USD via bank wire to non-US bank accounts. If you wish to redeem via this method you will be required to provide us with such bank details before we can process a redemption request. Note that redemption for Temporary Global Certificates (i.e. prior to your token issuance) is only available for amounts greater than $100,000; for amounts less than this you will need to wait until your Tokens are minted. To redeem via API through Ondo Global Markets (BVI) Limited, please reach out to us at support@ondo.finance.

For more information on Ondo Global Markets (BVI) Limited see the Ondo Global Markets section of these docs. For more information on USDY issued through Ondo USDY LLC, or to learn how to redeem through Ondo USDY LLC, visit the FAQ section of these docs.

Understanding rUSDY

rUSDY = A Type of ‘Wrapped’ USDY

It’s important to understand that each rUSDY still corresponds to some amount of “regular” USDY that is locked in a wrapper contract. This wrapper contract locks the USDY in the contract, mints the corresponding amount of rUSDY, and sends that rUSDY to your wallet. For example, if you had 1,000 USDY tokens worth $10 each — so, a total of $10,000 of value — the 1,000 USDY would be locked in the wrapper contract, which would then mint 10,000 rUSDY tokens and then send those to your wallet. Conversely, if you wanted to convert your rUSDY tokens back to USDY tokens, your rUSDY tokens would be sent to the wrapper contract. This wrapper would then burn the rUSDY tokens, “unlock” the corresponding number of USDY tokens, and send those USDY tokens to your wallet.

This means that the total supply of USDY is comprised of two ‘types’ of USDY:

• Wrapped USDY - i.e. USDY that is locked in the rUSDY wrapper contract and corresponds to the ‘reserve’ for the corresponding issued rUSDY.
• Non-Wrapped USDY — i.e. USDY that isn’t locked in the rUSDY wrapper contract.

There are three important implications of this:

• The “dollar value” that is represented by all rUSDY tokens is exactly equal to the amount of “dollar value” represented by all applicable wrapped USDY tokens. In other words, TVL_rUSDY = TVL_Wrapped_USDY → TVL_rUSDY = Num_Wrapped_USDY_Tokens * TokenReferencePrice_per_USDY (Token Reference Price is the ‘face value’ of the token. You can learn more about how the price of USDY is determined here)
• Because of this, if you were to add up the total amount of USDY and the amount of rUSDY, you would be double counting the value of the wrapped USDY, because some of that value is already represented by the rUSDY.
• Therefore, to properly calculate the TVL of USDY, the appropriate calculation is as follows:

Total USDY TVL (e.g. both versions) = Num_rUSDY_Tokens * $1.00 + Num_Non-Wrapped_USDY_Tokens * TokenReferencePrice_per_USDY

OR

Total USDY TVL (e.g. both versions) = (Num_Wrapped_USDY_Tokens + Num_Non-Wrapped_USDY_Tokens_ * TokenReferencePrice_per_USDY

i.e. the two calculations should result in the same number (adjusting for rounding).

rUSDY Price Stability via Rebasing

Rebasing is a mechanism through which the total supply of tokens is adjusted. The basic intuition is that, if we’re trying to keep the price per token at $1.00, as the value of rUSDY’s underlying assets increase in value, we need to increase the number of tokens such that the “value of assets” divided by the number of tokens remains constant. For tokens like USDY and rUSDY, the redemption value of the rUSDY token can be calculated by dividing the TVL of the rUSDY share class by the number of rUSDY tokens

TokenReferencePrice_per_rUSDY = TVL_rUSDY / Num_rUSDY_Tokens

From above, recall that TVL_rUSDY = Num_Wrapped_USDY_Tokens * TokenReferencePrice_per_USDY, so we have TokenReferencePrice_per_rUSDY = (Num_Wrapped_USDY_Tokens * TokenReferencePrice_per_USDY) / Num_rUSDY_Tokens Therefore, as TokenReferencePrice_per_USDY increases each day based on the Token yield rate for that month, TokenReferencePrice_per_rUSDY would also increase…unless we also increased Num_rUSDY_Tokens. Since we want to keep TokenReferencePrice_per_rUSDY at $1.00, this means that we must increase Num_rUSDY_Tokens to keep the price at $1.00.

For more technical details on how rebasing works, you can read more here. For more detailed information about USDY, please refer to the rest of these support docs or reach out to us at support@ondo.finance

USDY Legal Disclaimer

USDY tokens have not been registered under the US Securities Act of 1933, as amended ("Act") or the securities or financial instrument laws of any other jurisdiction, and may not be offered or sold in the US or to US persons unless registered under the Act or an exemption from the registration requirements thereof is available. The Tokens are offered and sold in the European Economic Area and the United Kingdom solely to qualified investors, and in Switzerland solely to professional clients. Other jurisdiction-based prohibitions and restrictions apply. Ondo Global Markets (BVI) Limited, the issuer of USDY, is not registered as an investment company under the US Investment Company Act of 1940, as amended, or as an Alternative Investment Fund or Undertaking for Collective Investment in Transferable Securities in the European Economic Area, or under the securities or financial instrument laws of any other jurisdiction. Nothing herein constitutes any offer to sell, or any solicitation of an offer to buy, USDY. Nothing herein constitutes investing advice. Acquiring USDY involves risks. A USDY holder may incur losses, including total loss of their purchase price. Past performance is not an indication of future results. Additional terms apply. See docs.ondo.finance/legal/terms-of-service, docs.ondo.finance/general-access-products/usdy and ondo.finance/usdy (opens in a new tab) for details.