What is Ondo Finance? How to Participate in Tokenized U.S. Treasury Investments
Ondo Finance moves traditional financial assets including U.S. Treasuries and money market funds onto the blockchain, packaging them into tokenized products that let users participate in these investments as easily as trading cryptocurrencies. It is currently the world's largest platform for tokenized U.S. Treasuries and tokenized equities, with a total value locked (TVL) exceeding $2.5 billion, of which roughly $2 billion comes from its tokenized U.S. Treasury product line. It uses a two-tier participation threshold: retail users can purchase USDY (a yield-bearing token with a $1 minimum investment), while institutional or large capital users can access OUSG (a tokenized U.S. Treasury fund with a $100,000 minimum entry).
1. Clarify What Ondo Is: Top Player in the RWA Sector
Core positioning: Understand Ondo's basic orientation and the pain points it solves for users.
How it operates: Founded in 2021, Ondo Finance is a DeFi platform focused on tokenizing real-world assets (RWA). Its business workflow can be broken down into 3 clear steps:
Package low-risk traditional assets such as U.S. Treasuries and money market funds into on-chain tokens
Users deposit stablecoins like USDC to exchange for corresponding tokenized assets
These tokens represent your proportional ownership of the underlying assets, and continuously generate returns from U.S. Treasury yields
Ondo consists of two core divisions: the asset management division (responsible for developing and managing all tokenized products) and the technology division (responsible for maintaining the underlying DeFi protocol infrastructure).
Key takeaway: You should be able to clearly define Ondo as a regulated platform that brings low-volatility traditional yield assets on-chain, rather than a high-risk, high-volatility native crypto project.
Ondo has reached a formal cooperation with DTCC (Depository Trust & Clearing Corporation of the United States), and more than 30 institutions including BlackRock, JPMorgan Chase, and Goldman Sachs have participated in its tokenized securities pilot programs, marking that the tokenized asset track is moving from concept validation to formal production deployment.
2. Recognize Core Products: USDY and OUSG
Core positioning: Distinguish between Ondo's two flagship products, and select the right product based on your capital size and investment needs.
Product details:
USDY (Ondo USD Yield Token) — Preferred for retail investors
What it is: A yield-bearing token backed by short-term U.S. Treasuries and bank deposits, essentially a yield-generating alternative to regular stablecoins
Eligible users: Non-U.S. individual and institutional investors
Minimum threshold: No formal minimum limit, users can participate with very small capital
Yield mechanism: The token's net asset value grows continuously as underlying asset returns accrue, with a current APY of around 5%
Liquidity: After issuance, it can be freely transferred on-chain or integrated into DeFi protocols, supports 9 blockchains, with total TVL exceeding $1 billion
OUSG (Ondo Short-Term U.S. Treasury Fund) — Institutional-grade product
What it is: Tokenized share of a U.S. Treasury fund, with underlying assets managed by top asset management firms including BlackRock and Fidelity
Eligible users: Institutional investors and accredited investors, required to pass full compliance review
Minimum threshold: 100,000 USDC minimum investment
Yield mechanism: Returns are reflected in the change of the fund's net asset value, with total TVL exceeding $770 million
Liquidity: 24/7 subscription and redemption support, compatible with Ethereum, Solana, XRP Ledger and other blockchains
Key takeaway: Confirm the matching product based on your capital size — choose USDY for small investments, choose OUSG for large capital or institutional use cases.
The core difference between USDY and OUSG is that USDY is a tokenized promissory note with more open access and higher liquidity, while OUSG is tokenized fund shares with higher entry requirements, and is closer to a traditional regulated fund product.
3. Operation Guide: How to Purchase USDY
Core goal: Walk through the full process from registration to holding USDY tokens successfully.
Step-by-step workflow:
Step 1: Connect your crypto wallet
Visit the official Ondo Finance website (ondo.finance), click the "Connect Wallet" button
It supports all mainstream wallets including MetaMask, OKX Wallet, Phantom, etc.
Step 2: Complete identity verification (KYC)
Per regulatory requirements, you need to complete identity verification before purchasing USDY
You need to fill in personal information, upload valid ID documents, and complete facial recognition. The review process usually takes 1 to 3 working days
Step 3: Deposit funds
Deposit USDC to the designated wallet address, or deposit USD via bank wire transfer (wire transfer is only supported for single transactions over $100,000)
Fund processing usually takes 2 to 3 working days
Step 4: Wait for token minting
After fund processing is completed, you will enter a 40 to 50 day waiting period, during which you will receive a temporary proof of holding
When the waiting period ends, USDY tokens will be minted and distributed directly to your connected wallet
After that, you can freely transfer, trade or use the USDY in eligible regions for DeFi activities
Completion confirmation: You have received USDY tokens in your wallet, and can query the holding record on the corresponding blockchain explorer.
Prerequisites: You hold USDC on Ethereum/Solana/Polygon or other supported networks, your wallet is successfully connected, and you are a non-U.S. user who has passed KYC verification.
Common reasons for purchase failure:
KYC rejection: Information filled in is incomplete or ID document is not clear, you can resubmit materials as prompted
Network incompatibility: Make sure the USDC you deposit is on a network supported by Ondo, including Ethereum, Solana, BNB Chain, etc.
Region restriction: USDY is not open to users located in the United States for now
Risk warnings:
Not a 1:1 stablecoin: The net value of USDY grows as returns accrue, it is not permanently pegged to $1
Long waiting period: It takes 40 to 50 days from fund deposit to receiving the final tokens, and the capital cannot be used during this period
Compliance risk: You are required to complete full KYC, and redemption can only be processed via bank wire transfer to convert the tokens back to USD
Market risk: Although the underlying assets are low-risk products such as U.S. Treasuries, tokenized products still carry technical risks related to smart contracts and asset custody links
How to confirm you have participated correctly?
After passing KYC verification, you will see your USDY balance displayed on the Ondo official website or your connected wallet, which means you have successfully held the product. USDY can be traded on multiple eligible DEXs and CEXs, or deposited into supported DeFi protocols for extra returns. If you are a large capital investor, you can choose institutional-grade products such as OUSG, you will need to contact the official Ondo team to complete additional compliance procedures.
