Key Takeaways:
- Ondo’s bridge now enables USDY transfers between Solana and major EVM chains like Ethereum and Arbitrum.
- The launch includes Ondo’s Decentralized Verifier Network (DVN) for enhanced security.
- This move strengthens USDY’s role as a composable, yield-bearing, institutional-grade RWA across chains.
Ondo Finance has unveiled a significant expansion of its real-world asset (RWA) bridging infrastructure, marking Solana’s official entry into its institutional-grade omnichain network.
This development expands USDY’s accessibility so assets may be easily transferred between Solana and Ethereum, Arbitrum, and Mantle, opening new efficiencies for retail customers and institutions alike.
USDY, Ondo’s token collateralized by short-term US Treasuries, already has in excess of $170 million in total value locked on Solana and is now set to be a fully cross-chain asset.
The bridging framework was initially released with LayerZero but has since been rearchitected to serve demanding institutional needs. Particularly noteworthy was the launch of the bespoke Decentralized Verifier Network (DVN) by the network.
This verifier protocol independently checks mint-and-burn trades in cross-chain exchange so that trust assumptions are kept to a minimum and capital is transferred without counterparty friction or additional reserve requirements.
Ondo’s DVN Sets New Standard for Secure RWA Transfers
Characterizing this launch is the addition of Ondo’s DVN architecture. Developed specially for assets issued by Ondo, DVN solidifies verification protocols by lessening areas of failure.
This is a key move for institutions looking to have low-risk access to RWAs across chains, crypto market researcher Olivia Chang said. The DVN conducts off-chain validation and supply integrity checks to make cross-chain movement safe without compromising on capital efficiency.
These transfers utilize LayerZero’s burn-and-mint approach, which eschews third-party bridges’ liquidity fragmentation. Users are never reliant on pool liquidity or capital buffers.
Rather, the process is capital-efficient and trust-minimized in its entirety. This design awards USDY stablecoin-like characteristics along with functionality to bear yield.
USDY Now Competes with Stablecoins
Such integration enables USDY to serve as a suitable competitor to traditional stablecoins in cross-chain exchanges. The new functionality is attractive to institutional market players who value security and returns.
These market makers have an RWA-backed asset trading rapidly between networks with zero slippage and thus generating arbitrage and balance-of-portfolios opportunities previously requiring convoluted workarounds.
As it gets set to launch Ondo Global Markets, US equities onchain, this bridge establishes a blueprint for future RWA mobility. Institutional-grade design and composability are what Ondo hopes to bring to real-world assets in decentralized finance so that they are more useful, transferable, and reliable than previously.
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