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 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 - Majority in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), remainder in Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX), WisdomTree’s Government Money Market Digital Fund (WTGXX), FundBridge Capital’s Delta Wellington Ultra Short Treasury On-Chain Fund (ULTRA), Fidelity’s Fidelity Treasury Digital Fund (FYHXX), 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
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 USDY LLC, 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.