The post STBL integrates Ondo’s USDY to redefine how stablecoins generate yield appeared first on Coinpedia Fintech News
STBL.com (“STBL”), the next-generation stablecoin protocol, has announced a strategic collaboration with Ondo Finance, the leader in real-world asset tokenization. The partnership unlocks up to $50 million in USST minting capacity, backed by Ondo’s USDY, a tokenized yieldcoin secured by short-term U.S. Treasuries and bank demand deposits.
The integration signals a new era in stablecoin design, where institutional-grade, yield-bearing assets become the foundation for on-chain stability. As tokenized Treasuries and real-world assets (RWAs) continue to surge, STBL’s use of USDY as primary collateral showcases how blockchain-based money can evolve to deliver both stability and real yield.
A new model for stablecoin reserves
Unlike traditional stablecoins, which direct yield to issuers, STBL’s architecture returns profits to users who provide collateral. By incorporating USDY, a product backed by Treasuries and cash assets, the protocol strengthens its reserve model with transparent, yield-generating instruments designed for institutional scale.
“We’re excited that Ondo USDY is set to drive STBL’s growth with $50 million in reserve capacity, demonstrating how institutional-grade, tokenized yield-bearing reserves underpin the future of the digital asset ecosystem”, said Ian De Bode, Chief Strategy Officer at Ondo Finance. “USDY’s investor protections, seamless composability, and permissionless design make it the ideal form of collateral for the next wave of stablecoin innovation.”
“Stablecoin design has to catch up with reality: the world is moving to tokenized reserves”, added Dr. Avtar Sehra, Co-Founder and CEO of STBL. “Our framework is built for this new paradigm—multi-tier, overcollateralized, and engineered to scale stability and yield together.”
Bridging DeFi with institutional finance
STBL’s model separates principal and yield into two assets: USST, the payment stablecoin fully backed by principal value, and YLD, a yield-bearing NFT tied to the underlying RWAs. This ensures USST remains a freely transferable, non-interest-bearing stable asset, while yield rights stay ring-fenced for eligible holders, meeting emerging regulatory standards.
“The first era of stablecoins concentrated value with issuers. STBL flips that script so the benefits of the collateral flow back to those who provide it”, said Reeve Collins, Co-Founder and Chairman of STBL. “Partnering with Ondo helps us extend that alignment into the heart of the reserves.”
With this collaboration, STBL demonstrates how programmable, compliant capital can merge transparency, yield, and usability, bridging the gap between DeFi and institutional-grade finance. The protocol’s first phase of USST minting launches October 10, marking the start of a new chapter for stablecoin infrastructure built on tokenized real-world assets.