What is USDY?
USDY (US Dollar Yield Token) is a tokenized note secured by short-term US Treasuries and bank demand deposits. USDY is accessible to non-US individual and institutional investors and is designed to combine the accessibility of a stablecoin with high-quality, US dollar-denominated yield.
Creating a product that meets these requirements while also complying with applicable US laws and regulations does impose some limitations, however. For example, although you start earning interest as soon as we process your deposit, note that we can only mint your transferable USDY tokens between 40-50 days later (depending upon exactly when you invest). Furthermore, we can only redeem to USD via bank wire to non-US bank accounts.
How does it work?
- Deposit Funds. 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 we process your funds (typically within 2-3 Business Days).
- Cohort Assignment. Your purchase will be assigned a cohort, which determines the date on which we can provide you with your tokens. This approach ensures compliance with legal and regulatory requirements.
- Certificate Generation. As soon as we process your funds, you will receive a Token Certificate that entitles you to receive your actual tokens as soon as we're allowed to provide them to you. This is between 40 and 50 days after we process your deposit. This date is listed on your Token Certificate.
- Token Minting. As soon as the required amount of time has passed, you will receive your tokens in your designated wallet. You are then free to transfer your tokens to anyone within eligible geographies.
Note that to comply with applicable US laws and regulations, we can only redeem USD via bank wire to non-US bank accounts. If you wish to redeem you will be required to provide us with such bank details before we can process a redemption request. Note that redemption for Token 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.
For more information, see our How it Works page as well as the FAQ section of these docs.
These pages are provided solely to facilitate your understanding of certain key features and terms of USDY and its issuer, and is qualified in all respects by the Tokenized Credit and Security Agreement, your Subscription Agreement, the Borrowing and Lending Memorandum, and the Limited Liability Company Agreement of Ondo USDY LLC.
For the purposes of these pages, the capitalized term “Token” shall refer to the transferrable USDY token.
Neither these pages, nor any related links or discussions, nor any portion hereof or thereof, constitutes any offer to sell, or any solicitation of an offer to buy, any securities, including but not limited to USDY Tokens.
Neither these pages, nor any related links or discussions, nor any portion hereof of thereof, constitutes any representation, warranty or covenant on the part of Ondo Finance Inc., Ondo USDY LLC or any other person.
These pages and their links contain, and officers, agents or representatives of Ondo Finance Inc. or Ondo USDY LLC may from time to time make, "forward-looking statements". Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Ondo Finance Inc., Ondo USDY LLC and their respective officers, agents and representatives. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Acquiring USDY Tokens is speculative and involves substantial risks. There can be no assurances that a USDY Token holder will not incur losses, including total loss of their investment in USDY Tokens.
The USDY Tokens are not offered OR SOLD, and will not be offered OR SOLD, in the United States or to US persons. In addition, the USDY Tokens have not been registered under the Securities Act of 1933, as amended (the “Act”) or the securities laws of any other jurisdiction, and may not be offered, sold or otherwise transferred in the United States or to US persons unless the securities are registered under the Act, or an exemption from the registration requirements of the Act is available. Additional limitations on transfer also apply.