STBL and @OndoFinance have partnered to enable $50M in USST minting capacity, using USDY, Ondo’s tokenized U.S. Treasury yield asset, as primary collateral. This collaboration represents a major step forward in stablecoin reserve design, combining compliant, RWA-backed
STBL taps Ondo Finance to strengthen stablecoin reserves with US treasuries


STBL has announced a strategic collaboration with the leading RWAs tokenisation platform Ondo Finance.
According to today’s press release, the partnership will facilitate USST stablecoin minting worth $50 million, backed by Ondo’s tokenised US Treasury yield product USDY.
Notably, USDY is 100% backed by bank deposits and short-term US Treasuries. It delivers institutional-level yield while safeguarding investors.
With the alliance, STBL joins the few stablecoin issuers that have directly integrated compliant, yield-generating collateral on their reserve models.
Ondo Finance’s Chief Strategy Officer Ian De Bode said:
We are 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. USDY’s investor protections, seamless composability, and permissionless design make it the ideal form of collateral for the next wave of stablecoin innovation.
Merging RWAs with DeFi
By integrating USDY, STBL aims to blend the innovation of decentralised systems and the reliability of TradFi.
The approach demonstrates dedication to balancing stability, yield, and compliance, which remain a challenge in the evolving stablecoin landscape.
STBL Chairman and co-founder Reeve Collins highlighted that the latest alliance transforms how value moves in the financial world.
While the initial stage of stablecoin prioritises issuers, Collins trusts:
STBL flips that scrip so the benefits of the collateral flow back to those who provide it. Partnering with Ondo helps us extend that alignment into the heart of the reserves, and it’s a major step toward making stablecoins a true public-utility infrastructure for crypto and traditional markets alike.
Inside STBL’s stable mechanism
STBL’s model underpins stability with a reserve design that separates yield and principal into two tokens.
Firstly, USST is a fully backed, non-yield-generating stablecoin for payments. It ensures regulatory alignment and free circulation.
On the other hand, secondary token YLD supports yields from underlying assets while isolating financial incentives for qualified holders.
With this separation, STBL can meet regulatory requirements while allowing institutions to earn yield from real-world assets.
Stablecoins gain traction
The Ondo-STBL alliance comes at a crucial time. Stablecoins are gaining momentum as cryptocurrencies anticipate rallies in Q4.
Stablecoin transactions have surpassed $2.4 trillion as investors eye these assets as a bridge between compliance, liquidity, and yield.
MasterCard and Coinbase are planning to acquire stablecoin firm BVNK, as Ripple continues to expand RLUSD global adoption.
Meanwhile, STBL and Ondo are redefining how stablecoins operate by combining DeFi and US Treasuries.
The new era prioritises yield, transparency, security, and regulatory alignment.
Markets will watch how the collaboration will shape on-chain financial stability, with the initial USST minting phase underway.
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STBL taps Ondo Finance to strengthen stablecoin reserves with US treasuries


STBL has announced a strategic collaboration with the leading RWAs tokenisation platform Ondo Finance.
According to today’s press release, the partnership will facilitate USST stablecoin minting worth $50 million, backed by Ondo’s tokenised US Treasury yield product USDY.
STBL and @OndoFinance have partnered to enable $50M in USST minting capacity, using USDY, Ondo’s tokenized U.S. Treasury yield asset, as primary collateral. This collaboration represents a major step forward in stablecoin reserve design, combining compliant, RWA-backed
Notably, USDY is 100% backed by bank deposits and short-term US Treasuries. It delivers institutional-level yield while safeguarding investors.
With the alliance, STBL joins the few stablecoin issuers that have directly integrated compliant, yield-generating collateral on their reserve models.
Ondo Finance’s Chief Strategy Officer Ian De Bode said:
We are 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. USDY’s investor protections, seamless composability, and permissionless design make it the ideal form of collateral for the next wave of stablecoin innovation.
Merging RWAs with DeFi
By integrating USDY, STBL aims to blend the innovation of decentralised systems and the reliability of TradFi.
The approach demonstrates dedication to balancing stability, yield, and compliance, which remain a challenge in the evolving stablecoin landscape.
STBL Chairman and co-founder Reeve Collins highlighted that the latest alliance transforms how value moves in the financial world.
While the initial stage of stablecoin prioritises issuers, Collins trusts:
STBL flips that scrip so the benefits of the collateral flow back to those who provide it. Partnering with Ondo helps us extend that alignment into the heart of the reserves, and it’s a major step toward making stablecoins a true public-utility infrastructure for crypto and traditional markets alike.
Inside STBL’s stable mechanism
STBL’s model underpins stability with a reserve design that separates yield and principal into two tokens.
Firstly, USST is a fully backed, non-yield-generating stablecoin for payments. It ensures regulatory alignment and free circulation.
On the other hand, secondary token YLD supports yields from underlying assets while isolating financial incentives for qualified holders.
With this separation, STBL can meet regulatory requirements while allowing institutions to earn yield from real-world assets.
Stablecoins gain traction
The Ondo-STBL alliance comes at a crucial time. Stablecoins are gaining momentum as cryptocurrencies anticipate rallies in Q4.
Stablecoin transactions have surpassed $2.4 trillion as investors eye these assets as a bridge between compliance, liquidity, and yield.
MasterCard and Coinbase are planning to acquire stablecoin firm BVNK, as Ripple continues to expand RLUSD global adoption.
Meanwhile, STBL and Ondo are redefining how stablecoins operate by combining DeFi and US Treasuries.
The new era prioritises yield, transparency, security, and regulatory alignment.
Markets will watch how the collaboration will shape on-chain financial stability, with the initial USST minting phase underway.
The post STBL taps Ondo Finance to strengthen stablecoin reserves with US treasuries appeared first on Invezz
Read More
