Ondo integrates LayerZero for multi-chain USDY support

Ondo Finance, a tokenized real-world asset platform, has integrated LayerZero’s interoperability protocol for multi-chain transfers of tokenized assets.

According to the announcement, Ondo (ONDO) will leverage LayerZero (ZRO) technology to expand the reach of its U.S. Dollar Yield (USDY) stablecoin, a tokenized U.S. Treasury bond asset yielding a market cap exceeding $452 million. USDY is currently the third largest tokenized US Treasury bond product.

“Enterprise-level assets require secure and reliable interoperability to fully unlock the potential of blockchain technology,” said Nathan Allman, CEO of Ondo Finance. “Our partnership with LayerZero provides seamless cross-chain transactions, providing the robust infrastructure needed for institutions to make their tokenized assets securely accessible across the omnichain across interconnected blockchains.”

Ondo will use LayerZero’s Omnichain Fungible Token Standard (OFT), which extends the functionality of ERC-20 tokens for broader DeFi usage. The integration provides enterprise-level security with authentication powered by platforms such as Polyhedra, Axelar, and LayerZero Labs.

Users will now have access to yield-yielding US Treasury securities without the need to mint new tokens on additional chains. Ondo’s USDY is fully interoperable between Ethereum, Arbitrum and Mantle networks thanks to this integration.

Ondo and LayerZero will expand their collaboration beyond the three initially supported networks. Data from rwa.xyz shows that tokenized real-world assets are also available in Solana, Sui, and Aptos.

According to Rwa.xyz, Ondo’s RWA products have grown to 11, bringing the platform’s total value in yield-backed tokenized U.S. Treasury securities to over $600 million. This positions Ondo ahead of rivals such as BlackRock tokenization partner Securitize, Hashnote, and Franklin Templeton Benji Investments.