Comparison to Other Ondo Products
How does UDSY compare to OUSG?
While OUSG and USDY are both institutional-grade tokenized cash-equivalents, they have slightly different intended audiences and use cases.
- OUSG provides Tokenized exposure to short-term Treasuries. USDY is secured by Tokenized Treasuries and bank deposits.
- OUSG represents membership / equity interests in a fund holding Treasuries and money market funds, respectively. USDY is an interest-bearing note.
- OUSG and USDY are are total-return instruments: any interest paid out on the underlying assets is reinvested, causing the value of these tokens to generally increase in value over time.
- OUSG is available to only Qualified Purchasers, but anywhere in the world; USDY is available only to those in eligible geographies but no investor accreditation is required.
- OUSG is tradable at any time in the secondary market, but only to those who have completed our onboarding process. USDY has a restricted period during which it cannot trade, but after that can be traded freely among anyone within eligible geographies.
Here is a summary chart below:
| OUSG | USDY | |
|---|---|---|
| Collateral | Primarily funds that invest in short-term US Treasuries and or Treasury repos - Significant majority in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), remainder in BlackRock’s FedFund (TFDXX), bank deposits, and USDC for liquidity purposes | Short-term US Treasuries and bank deposits, plus equity subordination |
| Returns | As the underlying investments accrue yield daily, we recognize this yield by increasing the Net Asset Value (NAV) of the underlying fund, thereby increasing the NAV per OUSG token. These investments have some limited interest rate risk. | Variable rate set by Ondo Finance; no principal volatility from interest rate risk |
| Investor Geography* | Global (US and non-US) | Non-US |
| Investor Qualification | Institutional (Qualified Purchasers) | Retail and institutional |
| Issuer | Ondo I LP | Ondo USDY LLC |
| Legal Structure | Limited partnership interest | Senior secured loan |
* Subject to additional restrictions
Legal Notice
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.