Ondo Finance expands US bond-denominated token USDY to Sui

Introducing USDY, a US bond-denominated token, on Sui
Financial services company Ondo Finance announced on the 8th that it will introduce USDY, backed by U.S. Treasury bonds, on the layer 1 blockchain ‘Sui’. This is said to be the first local dollar-denominated token of the Sui people.
USDY will be integrated into Sui’s leading DeFi (decentralized finance) protocol, powering the Sui ecosystem as a stable and liquid investment option.
USDY is considered a type of stable coin, but it is a RWA (real asset) type token collateralized by U.S. short-term government bonds and bank deposits, so holders can also earn returns.
Connection: US Ondo Finance issues USDY collateralized by US bonds and bank deposits to compete with stablecoins.

What is RWA?
Abbreviation for “real world asset.” RWA tokenized on the blockchain includes real assets such as real estate, art, and trading cards, as well as securities such as stocks and bonds.
Cryptocurrency Glossary

Connection: Why are investors interested in tokenizing real assets, and what are real assets (RWA)?
Significance of expansion to Sui
Nathan Allman, CEO of Ondo Finance, spoke about the importance of introducing USDY to Sui:

Sui’s impressive growth in the DeFi space is a realization of the potential of blockchain technology. This is also an opportunity to contribute to Sui’s on-chain financial ecosystem.
Collaborating with Sui will expand Ondo’s reach, introduce Ondo’s trusted and monetizable asset USDY to a wider audience, and foster innovation and stability across the ecosystem.

“Sui’s recent DeFi trading volume growth is already industry-leading, and the addition of Ondo further strengthens this trajectory,” added Greg Siourounis, Managing Director of Sui Foundation.
Ondo Finance also launched USDY on the Ethereum (ETH) L2 ‘Mantle Network’ in November last year.
Connect: Ondo Finance launches RWA token “USDY” on Ethereum L2 “Mantle”.
Sui is on the rise

Source: DeFillama

Sui is a layer 1 blockchain with smart contract functionality featuring high processing power.
The network’s assets under management (TVL) has increased by approximately 1000% over the past four months. According to DeFillama, at the time of writing, TVL ranked 9th in the blockchain rankings and was worth about 74 billion yen (about 500 million dollars).
It is pointed out that the reason for this growth is the provision of incentives to early users and expectations of airdrops. Various applications such as liquid staking, decentralized exchange (DEX), and lending protocols are also expanding.
Connection: Sui entered the DeFi TVL top 10, what is the reason for the breakthrough?
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