Ondo Finance's US Treasury-backed stablecoin expands to Sui

Nearly three months after introducing a cross-chain solution, Ondo ONDO +5.80% Finance is expanding to Sui SUI -0.56% 's Layer 1 blockchain, according to a statement. 

"The expansion will bring Sui Network’s first native dollar-denominated token (including stablecoins and interest-bearing stablecoin substitutes) in the form of Ondo USD Yield or 'USDY,' a US treasury-backed and interest-bearing token issued by Ondo,"the company said.

Ondo Finance is the issuer of the USDY stablecoin, a tokenized note secured by short-term U.S. Treasurys and bank demand deposits, which offers yield generated from the underlying assets. Recently, Ondo COO Justin Schmidt suggested the market for yield-bearing stablecoins could eventually exceed the "total addressable market" for regular stablecoins.

Last November, Ondo Finance collaborated with  Axelar to introduce a cross-chain solution called Ondo bridge that supports the issuance of native tokens, including USDY, across blockchain networks supported by Axelar AXL +6.54% . This was after Axelar in 2022 partnered with Mysten Labs, the developer of Sui, "to deliver cross-chain user experiences."

'Perfect fit for Ondo'

Sui launched its mainnet last May. It competes with other high-performance blockchains like Solana, Aptos and Sei.

"The people who interact with our platform want fast and efficient transactions, which should be essential for any blockchain project," Ondo Finance founder and CEO Nathan Allman said in a statement. "Sui’s growth and network performance offer clear confirmation that its network is the perfect fit for Ondo’s ecosystem."