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STBL USDY partnership enables $50M in USST minting via Ondo’s yield token, advancing stablecoin collateral innovation.
Author: Akshat Thakur
October 10, 2025 — The STBL USDY Partnership marks a significant step forward in stablecoin collateralization as STBL.com announces a collaboration with Ondo Finance to enable $50 million in USST minting capacity backed by USDY, Ondo’s U.S. Treasury-backed yield token. The move reinforces how institutional-grade tokenized assets are reshaping the foundation of stablecoins.
USDY, Ondo’s flagship tokenized yield coin, is backed by short-term Treasuries and demand deposits, structured to deliver U.S. dollar yield to eligible holders while maintaining strong investor protections. STBL integrates this institutional-grade collateral into its reserve layer, enabling users to mint USST stablecoins against high-quality assets while maintaining overcollateralization and transparent governance.
STBL CEO Dr. Avtar Sehra said the collaboration reflects the evolution of stablecoin design: “Stablecoin architecture has to catch up with tokenized reserves. Our framework brings scalability, stability, and compliance together.”
The STBL USDY Partnership also supports the protocol’s dual-token model, which separates principal and yield. The USST stablecoin remains a payment token fully backed by principal reserves, while YLD carries yield rights from underlying tokenized assets. This division ensures compliance with emerging regulations while enabling institutions to mint USST, retain yield exposure, and access DeFi liquidity seamlessly.
Ondo Finance’s Chief Strategy Officer Ian De Bode highlighted that USDY’s integration demonstrates “how permissionless, yield-bearing reserves will underpin the next generation of stablecoins.”
The partnership arrives amid growing demand for transparent, yield-backed stablecoins as institutions seek safer collateral sources. According to RWA.xyz, tokenized Treasury products have surpassed $8 billion in circulation, with Ondo leading the segment. STBL’s move aligns with this momentum, combining DeFi composability with institutional-grade backing.
Industry observers view the STBL USDY Partnership as a model for how stablecoin protocols can leverage tokenized RWAs to achieve both transparency and scalability while remaining within evolving global compliance frameworks.
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