Ondo's USDY turns three with $2.1B market cap and a top 3 seat

@OndoFinance's US Dollar Yield Token (USDY) has reached its third anniversary, crossing a $2.1 billion market cap and securing a place among the top three tokenized Treasury products globally, according to data cited by @BSCNews.

A Growing Market with Stiff Competition

USDY sits behind two dominant products in the tokenized Treasury space. According to RWA.xyz data, the top government securities tokens are Circle's USYC at $3.0 billion and BlackRock's BUIDL at $2.4 billion, with USDY at $2.1 billion. The broader market has grown rapidly: the total tokenized Treasury market crossed $10 billion in February 2026 and reached approximately $11.13 billion by early March 2026.

Circle's lead at the top of the table reflects the consolidation of Hashnote's product under its umbrella. Circle entered the tokenized Treasury space in January 2025 through its acquisition of Hashnote, the original issuer of USYC. BlackRock's BUIDL, meanwhile, has seen its market share compress as competition has intensified. At its peak in May 2024, BUIDL commanded approximately 46% of the entire tokenized Treasury market, but by late April 2026 that share had fallen to the high teens as the category grew and competitors scaled.

What USDY Offers

USDY is structured as a yield-bearing token backed by short-term US Treasuries and bank deposits. Each USDY represents a senior unsecured claim on a portfolio held by Ondo USDY LLC, a Delaware bankruptcy-remote vehicle. Rather than targeting a stable $1.00 price, the token accrues interest through a rising redemption value, with the premium reflecting accumulated yield. There is also a rebasing variant, rUSDY, that pays interest as a balance increase rather than a price increase.

USDY launched in August 2023 as an Ethereum-native token and expanded to Solana in early 2024, then to Mantle and Sui in mid-2024, and Aptos in late 2024. The token is live across six blockchains and supports permissionless transfers alongside 24/7 minting and redemption, features that distinguish it from traditional fixed-income instruments with settlement delays and restricted trading hours.

With $8.5 billion in cumulative transfer volume processed since launch, USDY has moved well beyond its early experimental phase. As the highest-yielding product in its category, USDY delivers approximately 4.8% APY with no explicit management fee, making it the best net yield in the tokenized Treasury category ahead of BUIDL and BENJI. That yield advantage, combined with broad chain availability, has helped USDY compete against more institutionally oriented rivals.

Sources:
SQ Magazine: Asset Tokenization Statistics 2026
Crypto Times: Circle vs BlackRock, Tokenized Treasury Market 2026
Eco: Ondo USDY Tokenized Treasuries Explained