STBL partners with Ondo Finance to unlock $50M in compliant, yield-backed stablecoin liquidity
STBL.com (“STBL”), the next-generation stablecoin protocol, has announced a strategic collaboration with Ondo Finance, a leader in real-world asset tokenization, to unlock up to $50 million in USST minting capacity backed by Ondo’s USDY. The move positions USDY, a tokenized yieldcoin secured by short-term U.S. Treasuries and bank deposits, as a cornerstone of STBL’s expanding reserve framework.
The partnership represents a significant step toward institutional-grade stablecoin infrastructure, as demand for tokenized Treasuries and compliant yield-bearing assets accelerates. USDY’s structure, fully backed by U.S. Treasuries and cash assets, with investor protections including a first-priority security interest over underlying collateral, aligns with STBL’s mission to merge on-chain programmability with regulatory transparency.
Building a compliant foundation for tokenized reserves
“We’re 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”, said Ian De Bode, Chief Strategy Officer at Ondo Finance.
“Stablecoin design has to catch up with reality: the world is moving to tokenized reserves”, added Dr. Avtar Sehra, Co-Founder and CEO of STBL. “Our framework is multi-tier, overcollateralized, and engineered to keep a tight peg while enabling the use of institutional-grade assets on-chain. Ondo’s USDY brings quality collateral, clear governance, and strong controls, exactly what’s needed for USST to scale utility without diluting stability.”
STBL’s architecture is designed to balance regulatory clarity with liquidity. It separates principal and yield into two instruments: USST, a fully backed payment stablecoin, and YLD, a yield-bearing NFT linked to the underlying RWAs. This ensures USST remains compliant as a non-interest-bearing asset, while yield rights are isolated for eligible holders, meeting evolving global regulatory expectations.
A blueprint for institutional-grade stablecoins
“The first era of stablecoins concentrated value with issuers”, said Reeve Collins, Co-Founder and Chairman of STBL. “STBL flips that script 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.”
By pairing USDY with STBL’s reserve and compliance framework, the collaboration offers a blueprint for programmable, compliant capital, allowing institutions to mint USST backed by tokenized Treasuries, retain exposure to yield through YLD, and unlock liquidity without compromising transparency.
The initiative underscores how regulated capital and DeFi infrastructure are converging, establishing a model for stablecoins that serve both institutional finance and the open blockchain economy. STBL’s first phase of USST minting is set to begin October 10, marking a milestone in the evolution of yield-backed digital money.