CeDeFi trading platform Grvt has partnered with Ondo Finance to build a position of up to $100 million in the tokenization firm’s yield-bearing USDY product over the next 12 months.
Summary
- Grvt plans to build a $100 million position in Ondo Finance’s USDY token over the next 12 months.
- USDY returns will feed into Grvt Earn’s base rate, allowing users to access the yield without buying or managing the token directly.
- At USDY’s current APY of about 3.5%, a fully deployed $100 million position would generate roughly $3.5 million in annualized gross yield.
- The planned allocation would equal about 4.6% of USDY’s current $2.14 billion in assets under management.
According to Grvt, USDY will be integrated into Grvt Earn, where the tokenized Treasury product will become another source of returns behind the platform’s existing base yield rather than an asset users need to buy or manage directly.
Grvt plans $100 million USDY position
Under the arrangement, Grvt will hold and manage USDY on its own balance sheet, while income generated by the position will feed into the single base rate offered through Grvt Earn. The structure is designed to give users access to returns from several sources through one balance.
USDY is a tokenized secured note issued by Ondo Finance and backed primarily by short-term U.S. Treasurys, shares in Treasury-focused exchange-traded funds and bank deposits. Data cited in the announcement puts USDY’s assets under management at about $2.14 billion, with approximately 15,626 holders.
At that size, a fully deployed $100 million Grvt position would account for about 4.6% of USDY’s current assets under management. With USDY currently offering an annual percentage yield of roughly 3.5%, the allocation could produce around $3.5 million in annualized gross yield if the full amount is deployed and the rate remains at that level.
USDY accrues yield daily, and Grvt plans to combine the returns with other income already supporting Grvt Earn. Existing sources include revenue generated by the trading platform and lending activity through Aave.
Grvt CEO Hong Yea said the company designed Grvt Earn so customers could keep their capital earning returns without managing the infrastructure behind individual yield sources.
“We built Grvt Earn so users can keep their capital productive without having to manage the financial plumbing underneath it,” Yea said. “Together, we are creating a model where one balance can draw from multiple financial markets while remaining ready to trade.”
Rather than distributing USDY directly to Earn users, Grvt will manage the token on its balance sheet and incorporate the resulting returns into the product’s base rate. Users can therefore retain a single balance on the platform while Grvt handles the underlying allocation.
Yea said Ondo provides Grvt with access to the U.S. Treasury market through a tokenized product and linked the planned allocation size to the company’s expectations for using such assets in onchain financial services.
“Our target of building a USDY position toward $100 million reflects the scale at which we believe tokenized assets can support everyday onchain financial products,” he said.
Ondo Finance has expanded Treasury products onchain
The agreement adds another distribution channel for Ondo Finance, which has built several products that bring traditional securities onto blockchain networks.
USDY has previously been introduced into other decentralized finance markets. In February 2025, crypto.news reported on a campaign between Ondo and NAVI Protocol on Sui that used USDY as part of a liquidity incentive program. Participants could supply liquidity and qualify for rewards distributed in NAVX and USDY.
Ondo also operates OUSG, its tokenized short-term U.S. government Treasury product. Unlike USDY, which is structured as a yield-bearing secured note, OUSG provides qualified investors with tokenized exposure to short-duration U.S. government securities.
In May, an institutional settlement test involving JPMorgan, Mastercard, Ripple and Ondo used OUSG for a cross-border redemption on the XRP Ledger. The test moved the tokenized Treasury asset through blockchain infrastructure while JPMorgan’s Kinexys network handled the dollar payment to Ripple’s bank account in Singapore.
Ondo had previously expanded OUSG to the XRP Ledger in June 2025, allowing qualified purchasers to mint and redeem the product around the clock using Ripple’s RLUSD stablecoin for settlement. At the time, OUSG had more than $670 million in total value locked across supported networks.
The company has since expanded beyond Treasury products. In June, Ondo brought a group of tokenized U.S. stocks and ETFs to Hyperliquid’s HyperEVM, initially supporting 35 securities including SPY, QQQ, Nvidia, Tesla, Alphabet and Netflix. Its Ondo Global Markets platform had accumulated more than $970 million in total value locked and nearly $18 billion in cumulative trading volume at the time.
Tokenized Treasurys have become a major RWA segment
Grvt’s planned USDY allocation comes as U.S. government debt has become one of the largest categories in the tokenized real-world asset market.
As previously covered by crypto.news, the value of tokenized real-world assets excluding stablecoins reached roughly $31 billion to $34 billion by May 2026, compared with about $5.4 billion at the start of 2025. Tokenized U.S. Treasurys accounted for approximately $15 billion, while Ethereum hosted about 60% of tokenized RWA value.
Several large financial firms now operate products in the segment. BlackRock’s BUIDL is a tokenized money market fund distributed through Securitize, while Franklin Templeton’s BENJI represents shares in its OnChain U.S. Government Money Fund.
Franklin Templeton has also continued adding distribution routes for BENJI. In May, Kraken parent Payward agreed to integrate the product into its platform for collateral and cash-management uses, allowing eligible clients to put idle dollar balances into an onchain yield product.
A month later, Franklin Templeton added BENJI to MoonPay Trade, enabling institutional customers to exchange stablecoins including USDC and USDT for the tokenized fund through MoonPay’s onchain trading infrastructure.
Grvt expands after $19 million funding round
For Grvt, the Ondo deal follows a capital raise that gave the platform additional funding to develop its hybrid trading infrastructure.
In September 2025, Grvt raised $19 million in a Series A round for its zero-knowledge-powered decentralized exchange. The platform operates on ZKsync and combines elements of centralized trading infrastructure with onchain settlement and self-custody.
Grvt has positioned its architecture around privacy, security, and scalability for onchain financial markets. The September financing followed the development of its exchange infrastructure and was intended to support continued expansion of the platform.
More recently, Grvt released its own token as it continued building products around its trading and yield services. Grvt Earn now sits alongside that exchange infrastructure, with platform revenue and Aave lending already supplying parts of its yield before the planned USDY allocation is fully deployed.
