Who controls it
Ondo administers this yield-bearing note, including its upgradeable token, allowlist, blocklist, sanctions checks, reserve custody, and redemption process.
- Backing
- A bankruptcy-remote portfolio of short-term U.S. Treasuries and bank demand deposits, subject to the offering documents.
- Holder’s claim
- USDY is a tokenized note. The holder is a creditor of the issuer, with no deposit and no direct ownership of any portfolio asset.
- Redemption or sale
- Eligible, verified investors redeem through Ondo’s RWAHub workflow; transfer eligibility and processing constraints apply.
Dependencies
- Ondo issuer and token administrator
- Portfolio custodian and bank
- Investor eligibility checks
- Upgradeable proxy and RWAHub contracts
Losses and incidents
- We found no control, reserve, or redemption incident in the sources we reviewed.
Advisor notes
Controlling party: Ondo USDY LLC, Ondo Finance, and contract administrator roles. Check whether the client can redeem directly with the issuer. Holding the token on chain leaves every reserve, custody, contract, and legal dependency in place.
A named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. This grade can sit beside a sound reserve, a useful product, or a fitting role in a client account. It records who can act on the token and passes no judgment on the product.
Questions before use
- Does the exact contract and chain match the instrument reviewed here?
- Which party can mint, burn, pause, upgrade, block, or redeem?
- Does the client have direct redemption access or only secondary liquidity?
- What protocol, bridge, wallet, and custodian dependencies are added?
- Which event would force a review or a sale?
Sources
- Ondo: USDY technical documentation · primary
- Ondo: USDY overview · primary
- DefiLlama: Stablecoins circulation dataset · secondary
Issuers can change their documents and product terms. This page gives our reading of control as of 2026-08-19. Check the current terms before a client buys.
Legend: No freeze key: no issuer or administrator can freeze an address at this layer · Governed, no freeze: on-chain collateral and governance set the terms, but no issuer blocklist exists · Mixed control: on-chain mechanisms sit beside custodians, real-world assets, a central transaction orderer, or other parties a court or regulator can compel · Issuer can freeze: a named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. How grading works.