Ondo Finance Bets Big on Yield-Bearing Stablecoins
Justin Schmidt, the Chief Operating Officer at Ondo Finance, which specializes in tokenized securities, is confident that yield-bearing stablecoins will outpace their traditional counterparts in the future. He notes that current issuers of such tokens are channeling investments into U.S. Treasury bonds and deposits, thereby securing their own profits, while regular users remain deprived from yield-generation.
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Justin Schmidt, the Chief Operating Officer at Ondo Finance, which specializes in tokenized securities, is confident that yield-bearing stablecoins will outpace their traditional counterparts in the future. He notes that current issuers of such tokens are channeling investments into U.S. Treasury bonds and deposits, thereby securing their own profits, while regular users remain deprived from yield-generation.
“If you've got, you know, USDC or USDT in there, you're not earning that yield — somebody else is,” Schmidt explains.
Ondo Finance also issues its yield-bearing stablecoin, USDY, offering returns to holders based on its backed assets. Yet, despite this innovative approach, USDY struggles with market acceptance and trust, reflected in its mere $38 million market cap and greater volatility compared to other stablecoins.
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