STBL picks Ondo’s USDY as primary collateral, unlocking $50M in USST minting capacity

DUBAI, United Arab Emirates and LONDON and NEW YORK, Oct. 10, 2025 (GLOBE NEWSWIRE) -- STBL.com, the next-generation stablecoin protocol, today announced a strategic collaboration with Ondo Finance, a leader in real-world asset tokenization. Under the partnership, up to $50 million in USST mints will be enabled using USDY (Ondo US Dollar Yield Token) as primary collateral. USDY is Ondo’s flagship tokenized yield coin backed by short‑term U.S. Treasuries and bank demand deposits. The collaboration highlights the evolution of stablecoin reserves and the growing role of institutional‑grade tokenized assets in underpinning digital money.

USDY complements STBL’s reserve architecture with an institutional‑grade product fully backed by U.S. Treasuries and cash assets. It is structured to deliver U.S‑dollar‑denominated yield to eligible holders while maintaining investor protections, including a first‑priority security interest over underlying assets held by an independent collateral agent. With USDY as a core component of its collateral stack, STBL sets a new standard for how stablecoins deliver utility at scale without compromising stability.

“Stablecoin design has to catch up with reality: the world is moving to tokenized reserves,” said Dr. Avtar Sehra, Co-Founder and CEO of STBL, “Our stable asset and reserve framework is built for this new paradigm - multi-tier, overcollateralized, and engineered to keep a tight peg and enable use of a variety of institutional-grade assets on-chain. Ondo’s USDY brings the right ingredients - quality collateral, clear governance, and strong controls - so USST can scale utility without diluting stability.”

Noting that the first era of stablecoins concentrated value with issuers, Reeve Collins, Co-Founder and Chairman of STBL, said: “STBL flips that script so the benefits of the collateral flow back to those who provide it. Partnering with Ondo helps us extend that alignment into the heart of the reserves, and it’s a major step toward making stablecoins true public-utility infrastructure for crypto and traditional markets alike.”

Ian De Bode, Chief Strategy Officer at Ondo Finance, commented: “We’re excited that Ondo USDY is set to drive STBL’s growth with $50 million in reserve capacity, demonstrating how institutional-grade, tokenized yield-bearing reserves underpin the future of the digital asset ecosystem. USDY’s investor protections, seamless composability, and permissionless design make it the ideal form of collateral for the next wave of stablecoin innovation.”

How STBL’s reserve and compliance framework works

STBL’s reserve model separates principal and yield into two distinct instruments. USST functions as the payment stablecoin and is fully backed by principal value, remaining non‑interest‑bearing and freely transferable to align with emerging regulatory standards. YLD carries the economic rights to yield from the underlying real‑world assets, isolating those rights for eligible holders while keeping day‑to‑day payments infrastructure clean and compliant.

To minimize friction, STBL indexes issuer and custodian allowlists directly so participants don’t repeat KYC, and yield distribution stays within defined regulatory perimeters. At the same time, USST circulates as permissionless collateral across DeFi. Dynamic mint‑and‑burn mechanics are engineered to preserve the peg across market conditions without relying on a centralized issuer. Governance is on‑chain and transparent, with parameters such as haircuts, redemption spreads, and fee routing modifiable as market structure evolves.

Taken together, the design lets institutions mint USST against Ondo’s USDY, retain yield exposure via YLD, and unlock liquidity without sacrificing regulatory clarity. Coupled with USDY’s first‑priority security interest and institutional controls, the framework demonstrates how stablecoins can be collateralized by high‑quality, yield‑bearing assets, return compliant yield to minters, and still operate as a trusted payment infrastructure across DeFi, exchanges, and institutional platforms.

Disclaimer: Digital assets carry risk, including loss of value up to total loss. This communication is informational only and not an offer or solicitation. USDY is a tokenized note (not a traditional “stablecoin”) and is unavailable to U.S. retail investors; eligibility and transferability are subject to jurisdictional restrictions and, where applicable, waiting periods.

Note: USDY has not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States or to U.S. persons without registration or a valid exemption. In the EEA, UK, and Switzerland, USDY is offered only to qualified/professional investors (or local equivalents). The issuer of USDY is not registered under the U.S. Investment Company Act of 1940, AIFMD, or UCITS. No representation or warranty is made regarding third-party products or services, and no liability is accepted for their use. Nothing herein is investment advice; prospective participants should seek independent legal and financial advice. Additional terms apply: ondo.finance/usdy and docs.ondo.finance/legal.

About STBL

STBL is next-generation stablecoin infrastructure that separates stability, yield, and governance into three tokens. Its flagship stablecoin, USST, is pegged to the U.S. dollar and backed by institutional-grade real-world assets. Yield from these assets is distributed through YLD, a programmable claim token, while $STBL serves as the governance and value-accrual token. This design ensures USST remains freely transferable and compliant as digital money, while value flows back to the community through transparent mechanisms such as Multi Factor Staking and Premium Buybacks. Governance of the protocol is conducted fully on-chain by $STBL holders.

Recently, STBL has announced multiple ecosystem integrations and partnerships designed to expand USST’s real-world utility and deepen liquidity across leading DeFi venues. The protocol is also preparing for its first phase of USST minting on October 10, 2025 and will soon unveil additional collaborations focused on transparent reporting and compliant yield delivery. Together, these developments position STBL as one of the most advanced and institutionally aligned stablecoin infrastructures in the market.

More information: STBL Website | Follow STBL on X | Explore $STBL

About Ondo Finance

Ondo is a blockchain technology company. Its mission is to accelerate the transition to an open economy by building the platforms, assets, and infrastructure that bring financial markets onchain. For more information, visit https://ondo.finance

More information: Ondo Website | Follow Ondo on X

Media contact:
Dr. Avtar Sehra
press@stbl.com

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