CeDeFi trading platform Grvt has partnered with Ondo Finance to build a $100 million position in the tokenization firm's yield-bearing USDY product over the next 12 months. According to reports from 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. The structure is designed to give users access to returns from several sources through one balance sheet.
At USDY's current annual percentage yield of approximately 3.5%, a fully deployed $100 million Grvt position would generate around $3.5 million in annualized gross yield. As reported by Grvt, 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. The planned allocation would equal about 4.6% of USDY's current $2.14 billion in assets under management, with approximately 15,626 holders according to data cited in the announcement. However, recent reports indicate USDY is currently running at around 4 to 5% annualized depending on maturity, potentially increasing the yield potential.
The integration of USDY as collateral on Grvt represents a significant shift in how decentralized exchanges manage their reserves. In the world of decentralized derivatives exchanges, collateral quality is critical as it determines system robustness under market stress. By substituting conventional stablecoins with a yield-generating asset like USDY, Grvt simultaneously improves capital efficiency and the resilience of its treasury. This move aligns with a broader trend where DeFi platforms are increasingly looking to optimize reserve usage by directing them toward yield-bearing assets rather than leaving conventional stablecoins like USDC or USDT idle inside smart contracts. The RWA sector, long confined to a niche role, is now asserting itself as critical DeFi infrastructure.
For Ondo Finance, this deal represents a major validation of its model as the platform has established itself as the undisputed leader in tokenized US fixed-income assets with a TVL exceeding one billion dollars. Bringing on a partner like Grvt strengthens its credibility among institutional players closely watching the RWA space. The agreement adds another distribution channel for Ondo Finance, which has built several products that bring traditional securities onto blockchain networks. The value of tokenized real-world assets excluding stablecoins reached roughly $31-34 billion by May 2026, compared with about $5.4 billion at the start of 2025. Protocols such as Ethena, Maker (now Sky), and Aave have already integrated RWA into their collateralization mechanisms, with Grvt's move demonstrating the sector's growing influence within the broader DeFi ecosystem.
