GRVT Plans $100 Million USDY Allocation to Tap US Treasury-Linked Yield

Hybrid decentralized finance platform GRVT plans to hold and manage $100 million of Ondo Finance's tokenized Treasury product USDY over the next year.

The Block reported on August 11 that GRVT will work with Ondo Finance to use USDY in its yield product, GRVT Earn.

USDY is a tokenized product that generates yield from short-term US Treasuries, Treasury-backed exchange-traded funds and bank deposits. It currently has about $2.14 billion in assets under management.

GRVT plans to hold and manage USDY directly as a company asset and reflect the resulting returns in the base yield paid to GRVT Earn users. That means users can receive the related yield without directly holding or managing USDY.

USDY currently offers an annual percentage yield of about 3.5%. If GRVT deploys the planned $100 million into USDY, the position would generate about $3.5 million in annual gross returns at the current rate. That would equal about 4.6% of USDY's total assets under management.

GRVT Chief Executive Officer Hong Yea said the goal of building a $100 million USDY position shows the company's view of the scale at which tokenized assets can support everyday on-chain financial products.