Ondo Finance Pioneers Tokenized US Treasuries on Sei Network

Ondo Finance, a leader in institutional-grade blockchain platforms, has announced a groundbreaking collaboration with Sei, introducing the first-ever US government bond product tokenized on the Sei network. This marks a significant stride in bridging traditional finance (TradFi) with the burgeoning world of Web3, offering a novel approach to moving real-world assets (RWAs) onto the blockchain.

An Industry First: United States Dollar Yield (USDY)

Ondo's new product, the United States Dollar Yield (USDY), is a tokenized note backed by short-term US Treasuries and bank deposits. Traditionally, US Treasuries are considered a "safe haven" asset in finance. By tokenizing these bonds, Ondo aims to make ownership easier and more efficient through fractionalization, granting developers and users access to a yield-bearing RWA seamlessly integrated into Sei's expanding decentralized finance (DeFi) stack.

As highlighted in an Ondo blog post, "USDY will be the first tokenized treasuries asset on the Sei network, a growing modular blockchain ecosystem, bringing institutional-grade onchain yield to its users for the first time." This innovation positions USDY to enhance the network's standing in the RWA-enabled on-chain finance space, whether used as collateral, a payment rail, or a base layer yield-primitive.

This strategic move follows World Liberty Financial's recent selection of the ONDO token as a strategic asset reserve, marked by a $470,000 purchase, further solidifying Ondo's growing influence in the DeFi space.

Sei Network's Ascendance

The choice of the Sei Network for this pioneering project comes at a time of remarkable growth for the platform. Sei is nearing $700 million in Total Value Locked (TVL), according to DefiLlama data. This represents an approximate 700% increase compared to its TVL of around $85 million at the same time last year.

"Ondo Finance is setting the standard for real-world asset tokenization, and we’re thrilled to welcome USDY to the Sei ecosystem," said Justin Barlow, Executive Director at the Sei Development Foundation.

Tokenization of Assets on the Rise

The RWA market is experiencing significant expansion, with data from RWA.xyz indicating a total value increase from $11.6 billion to over $24 billion in just one year. This surge is attracting major players across the crypto and traditional finance sectors:

• Cardano has ventured into Argentina’s mining sector to convert property rights to lithium into digital tokens.
• Chainlink has integrated with ANZ, an Australian bank, to facilitate secure cross-chain exchange of RWAs via its Cross-Chain Interoperability Protocol (CCIP).
• Fidelity Investments, one of the world’s largest asset managers with approximately $5.9 trillion in assets under management (AUM), has also reportedly entered the tokenization space, researching stablecoins and tokenized treasury products.

Ondo Finance's introduction of tokenized US government bonds on the Sei network reinforces the growing momentum behind RWA tokenization, promising a more accessible and efficient future for traditional assets on the blockchain.

July 2025, Cryptoniteuae