Ondo US Dollar Yield (USDY) Price Prediction

Deep Dive

1. Tokenized RWA Expansion (Bullish Impact)

Overview: USDY’s integration with high-speed blockchains like Solana and Sei (since July 2025) enhances its use in DeFi as collateral and payment rails. Ondo plans to launch tokenized stocks/ETFs in Q3 2025, targeting the $90T traditional securities market. Partnerships with Alchemy Pay enable fiat purchases in 173 countries, broadening access.
What this means: Expanded use cases and geographic reach could drive demand, supporting USDY’s $691M market cap. Solana’s $11.6B stablecoin market dominance (DeFiLlama) provides liquidity tailwinds.

2. Regulatory Uncertainty (Mixed Impact)

Overview: While USDY avoids U.S. users due to SEC scrutiny, its parent company Ondo acquired SEC-registered broker-dealer Oasis Pro in August 2025 to navigate compliance. The White House’s July 2025 report praised tokenization but left stablecoin rules unresolved.
What this means: Regulatory progress could unlock institutional inflows, but prolonged ambiguity might slow adoption. Non-U.S. growth (e.g., Asia, Europe) remains critical for sustaining its 4.29% yield advantage.

3. Yield Competition & Macro Risks (Bearish Impact)

Overview: USDY’s 4.29% APY trails FDUSD’s 6.8% and PYUSD’s 5.1% (CoinMarketCap). Fed rate cuts (50bps expected by December 2025) may compress Treasury yields, narrowing USDY’s spread vs. rivals.
What this means: Declining yield competitiveness could reduce demand, pressuring its 1.04% premium over USD. However, Ondo’s bankruptcy-remote structure and real-time yield accrual (vs. traditional T-bills’ settlement lag) offer unique value.

Conclusion

USDY’s price hinges on balancing yield attractiveness against regulatory and macro risks. Its multichain strategy and upcoming stock tokenization provide upside, but rate cuts and stablecoin competition pose challenges. For holders, monitoring weekly APY adjustments and Ondo’s Q3 product launches will be key: Can USDY maintain its yield edge as traditional and crypto markets converge?