Ondo Finance Launches Tokenized Treasury Fund on Sei: A Major Milestone for Onchain Yields
Ondo Finance just made headlines — again.
This time, the real-world asset (RWA) trailblazer is bringing its flagship USDY fund to the Sei Network, making it the first tokenized U.S. Treasury product to debut on this high-speed, Layer 1 blockchain.
Let’s break down what this means for investors, developers, and the future of DeFi.
Why This Launch Matters
Ondo isn’t just another DeFi startup. Backed by World Liberty Financial — a group tied to close allies of former U.S. President Donald Trump — the company is building serious momentum.
Here’s the big picture:
- USDY (United States Dollar Yield) is Ondo’s flagship product, a tokenized note backed by short-term U.S. Treasurys and bank demand deposits.
- It’s designed to offer stablecoin-like safety, while delivering an impressive ~4.25% APY.
- This fund is now live on Sei, a fast, EVM-compatible blockchain built using the Cosmos SDK that boasts 400ms block finality.
Translation? Yield meets composability. TradFi meets DeFi. And Sei just got its biggest real-world asset integration to date.
Tokenized US Treasury Bills are coming to Sei! 🇺🇸@OndoFinance is bringing its flagship product, USDY, with over $680M in TVL, to the fastest L1 blockchain.
— Sei (@SeiNetwork) July 17, 2025
Institutional-grade assets meet institutional-grade infrastructure.
Markets Move Faster on Sei. ($/acc) pic.twitter.com/XE8U1Y9d6q
A Look Inside Ondo’s Strategic Moves
Founded in 2021, Ondo has become a powerhouse in the RWA space, managing over $1.4 billion in assets. It’s not just USDY — the team also launched:
- OUSG, a yield-bearing token backed by BlackRock’s BUIDL fund
- OMMF, a tokenized money market fund investing in low-risk instruments
Now, with its expansion to Sei, Ondo is aiming for more than yield — it’s targeting developer adoption.
“USDY represents the kind of high-quality, composable yield primitive that will unlock new possibilities for builders,” said Justin Barlow, Executive Director at the Sei Development Foundation.
This kind of endorsement isn’t just noise. It’s a clear signal that traditional yield products are finding a home in fast, scalable blockchain environments.
Ondo’s Trump Connection — and Growing Influence
What makes this launch even more interesting is Ondo’s strategic ties.
- World Liberty Financial, a DeFi initiative linked to Trump’s inner circle, is a key backer.
- In February, the group purchased nearly $500,000 worth of ONDO tokens around the time Ondo launched its own Ondo Chain and Global Markets trading platform.
- According to Arkham Intelligence, ONDO is now one of World Liberty’s top 15 holdings.
Ondo isn’t just growing. It’s getting political attention — and serious capital backing.
A Broader Push Into RWA and Beyond
Ondo’s roadmap doesn’t stop at Treasurys.
The company is expanding its onchain capabilities by:
- Acquiring Strangelove, a blockchain development firm to strengthen RWA infrastructure.
- Buying Oasis Pro, a registered broker-dealer platform that will help Ondo tap into tokenized equities markets — a massive next step.
Meanwhile on the Sei Network…
Sei has been quietly building one of the fastest Layer 1s in the market.
- 400ms block finality
- Parallel order execution
- Built for speed and trading-centric apps
Backed by Multicoin Capital, the Sei team raised $5M in seed and $30M in Series A funding, reaching an $800M valuation.
Recently, the Sei Development Foundation, a U.S.-based nonprofit, was launched to support network growth amid a more favorable U.S. regulatory climate. Even Circle jumped in, bridging USDC to Sei and announcing a strategic investment.
Token Performance Snapshot
- SEI is currently trading at $0.36, down from its ATH of $1.14
- ONDO is trading at $1.04, up over 10% in 24 hours
With over 5.6 billion SEI tokens in circulation, the project’s fully diluted valuation sits at $3.6 billion.
The Bigger Picture
Ondo Finance is proving that real-world assets aren’t just hype — they’re the next frontier of DeFi. By tokenizing Treasury products and plugging them into scalable networks like Sei, they’re bridging traditional finance and onchain utility in a way few others are doing.
And this is just the beginning.
Want stable yields without sacrificing liquidity? Keep an eye on USDY.
Want exposure to real-world asset protocols with political firepower and serious institutional ties? Watch ONDO.
The game is changing — and Ondo Finance is writing the new playbook.
