Ondo Finance Integrates USDY with BitGo’s Go Network for Institutional Yield Access – BitRss

Ondo Finance has announced the integration of its United States Dollar Yield token (USDY) with BitGo’s Go Network. This collaboration aims to provide institutional finance with flexible cash management tools, leveraging the secure, real-time settlement platform of the Go Network. The network currently includes over 1,500 participating institutions and enterprises.

The integration allows users to hold USDY in BitGo’s secured and insured custody, facilitating direct settlement with counterparties on the network. This move introduces a yield-bearing asset as collateral, offering a more efficient and secure pathway for institutions to access stable, yield-generating digital assets.

Enhanced Security and Settlement Features

Built on BitGo’s regulated custody, the Go Network enables clients to mitigate risk and streamline settlement processes while utilizing productive assets. Assets are secured in cold storage with BitGo Trust Company, Inc. or BitGo Singapore Pte. Ltd., and are insured up to $250 million. This setup ensures that assets are not exposed to counterparties or exchanges.

The Go Network offers instant, free delivery versus payment (DVP) and transfers to its clients. Institutions can transfer USDY, along with over 200 other digital assets and USD, to counterparties for free, ensuring that assets remain within regulated custody without assuming additional counterparty risk.

Institutional Benefits and Compliance

The integration of Ondo’s tokenized US Treasuries into the Go Network provides institutions with access to manage their custodied balances in a yield-bearing asset with institutional-grade operations. The Go Network facilitates seamless and instant interparty settlement, while USDY offers frictionless access to yield from US Treasuries.

Participants in the Go Network can now access institutional-grade, dollar-denominated products that offer yield. USDY provides a reliable cash management alternative, earning yield from real-world financial instruments, and offering an alternative to traditional stablecoins.

BitGo’s multi-signature wallet architecture and regulated custodial services ensure that USDY holders benefit from an institutional-grade framework. This integration reflects Ondo Finance’s mission to bridge traditional finance with decentralized finance (DeFi) in a trusted and compliant manner.

The collaboration between BitGo and Ondo Finance aims to provide a compliant and efficient pathway for institutions to manage real-world assets on-chain. This integration enhances the accessibility of yield-bearing assets and contributes to a more robust and interconnected digital finance ecosystem.

For more details, the announcement can be found here.

Why This Matters: Impact, Industry Trends & Expert Insights

The integration of Ondo Finance’s USDY with BitGo’s Go Network marks a significant step in providing institutional investors with access to yield-bearing digital assets. This collaboration enhances the efficiency and security of managing real-world assets on-chain.

Recent industry reports indicate a growing trend towards institutional adoption of digital assets, including yield tokens. This aligns with the integration of USDY into BitGo’s network, offering institutions a secure and regulated environment to manage and settle digital assets efficiently.

As per insights from a Cobo report, institutional investors are increasingly adopting digital assets, driven by regulatory clarity and the need for secure custody solutions. This supports the impact of Ondo Finance’s integration with BitGo, as it provides a robust framework for institutions to safely engage with yield-generating assets.

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