RWA track total TVL (Source: Defillama)

The next wave of the blockchain world is not only about performance and throughput, but also about how to deeply integrate real-world assets with decentralized finance.

The next wave of the blockchain world is not only about performance and throughput, but also about how to deeply integrate real-world assets with decentralized finance. Just as Ethereum laid the foundation for the era of smart contracts, the RWA track is leading the transformation from technology to assets, making the on-chain ecology and traditional wealth achieve an unprecedented intersection.

Currently, according to DeFi Llama, RWA has jumped to the seventh largest category of DeFi, with a total locked value of more than 12 billion U.S. dollars.

RWA track total TVL (source: defillama)

RWA track total TVL (Source: Defillama)

U.S. Treasury bonds are the most liquid financial assets in the world. The average daily trading volume is as high as trillions of dollars all year round. They can be bought and sold at any time with extremely low bid-ask spreads. They are backed by the U.S. government with “full faith and credit” and have never defaulted substantially, making them a model of zero default risk. Their yield is regarded as a risk-free rate by the industry, meaning that investors can obtain a benchmark rate of return without any credit risk, providing the most reliable anchor for pricing and risk management of various assets.

The RWA track has become the best paradigm for off-chain assets to move towards on-chain innovation by virtue of its unique value of connecting to the real economy and combining it with the U.S. Treasury bonds, which are the most liquid and secure in the world. Tokenized Treasury bonds not only inherit the core advantages of the “risk-free interest rate” and the highest credit endorsement of U.S. Treasury bonds, but also integrate the transparency, efficiency and composability of DeFi into sovereign bonds, creating an unprecedented investment tool. The Boston Consulting Group predicts that by 2030, the global illiquid asset tokenization market will exceed $16 trillion, accounting for 10% of global GDP, including both emerging on-chain asset tokenization and traditional ETFs, real estate investment trusts and other share models. As of May 13, 2025, the market value of tokenized Treasury bonds has soared from approximately $1.39 billion a year ago to $6.89 billion, confirming the explosive growth potential of this track.

U.S. debt tokenization protocol market capitalization ranking (source: rwa.xyz)

Ondo Finance has firmly established itself at the forefront of the tokenized US Treasury market through its two flagship products, USDY and OUSG. USDY and OUSG account for two out of five of all tokenized US Treasury assets, and together contribute approximately 25% of the market share, significantly ahead of other similar products.

At the same time, Ondo Finance's overall TVL has also hit new highs. On March 3, 2025, the platform announced that its TVL exceeded US$1 billion for the first time, and now it is approaching US$1.2 billion in just two months.

Against the backdrop of falling global inflation and diverging interest rates, investors’ demand for stable and highly liquid assets continues to rise, and tokenized government bonds have emerged. What kind of innovations does Ondo Finance rely on to continue to lead? Where does its core moat come from? Looking forward to its development, how will Ondo use its unique tools and architecture to connect the last mile between the crypto world and Wall Street and achieve a truly “seamless asset channel”? Next, we will analyze in depth:

2. Overview

2.1 Project Introduction

Ondo Finance is a large, highly liquid ETF managed by asset management giants such as BlackRock and Pacific Investment Management Company (PIMCO). It has launched three tokenized U.S. Treasury and bond products, namely the U.S. Government Bond Fund (OUSG), the Short-Term Investment Grade Bond Fund (OSTB), and the High Yield Corporate Bond Fund (OHYG).

l Market share: about 20%

l Treasury bond product market value: $122,511,877

Management fee: 0.15%

2.2 Core Product Introduction

Ondo Finance's two core and best-performing products are USDY and OUSG, which are respectively aimed at stable income needs and U.S. Treasury bond investment scenarios, and constitute the basic pillars of its RWA product system.

2.2.1 USDY

USDY (US Dollar Yield Token) is an interest-bearing stablecoin issued by Ondo USDY LLC. Each USDY is backed by short-term U.S. Treasury bonds and bank demand deposits. Holders can automatically earn interest on the underlying assets without having to participate in additional contracts or pledges.

Mechanism Introduction:

l Issuance and minting: For institutions and qualified investors outside the United States, it can be minted and redeemed daily at the net value ($1 USDY≈$1