Ondo Finance, a leading provider of tokenized real-world assets (RWA), has officially announced the cessation of USDY (Ondo Yield Cash) minting on the Aptos and Noble networks. Starting September 8, 2026, new tokens will no longer be issued on these specific blockchains. While this change marks a significant shift in Ondo’s cross-chain strategy, the protocol emphasized that USDY on other supported networks remains unaffected, and the asset continues to be fully reserve-backed by high-quality collateral.
Impact on Cross-Chain Ecosystems
The decision to halt minting on Noble carries broader implications for the Cosmos ecosystem. Because USDY liquidity on the Osmosis and Mantra blockchains is facilitated via the Inter-Blockchain Communication (IBC) protocol through Noble, users on these platforms will also be affected by the suspension.
- Aptos: Native minting disabled as of Sept 8th.
- Noble: Native minting disabled, affecting IBC-connected chains.
- Secondary Markets: Liquidity provision may shift to other ecosystems.
USDY is a tokenized note secured by short-term US Treasuries and bank demand deposits, designed to provide institutional-grade yield to global investors.
Migration and Redemption Options for Holders
To ensure a smooth transition, Ondo Finance has outlined specific exit and migration pathways for current holders. The protocol has established a generous window period extending until September 8, 2027, allowing ample time for users to manage their positions.
"All affected holders will have complete migration or exit paths. USDY will remain fully reserve-backed throughout this process."
The procedures for users vary based on the size of their holdings:
- Large Holders (1,000+ USDY): Users can choose to bridge their assets to other supported networks or redeem the tokens directly with Ondo at net value.
- Small Holders (<1,000 USDY): These users are encouraged to access liquidity through third-party open markets or decentralized exchanges where USDY is traded.
Future Outlook for Ondo RWA
Despite the withdrawal from Aptos and Noble, Ondo Finance continues to maintain a strong presence across several other major blockchains. This strategic adjustment appears to be a refinement of their distribution network rather than a reduction in overall operations. The protocol remains focused on providing transparent, compliant, and liquid access to tokenized financial products, ensuring that the underlying reserves of USDY remain secure and verifiable for all remaining participants in the ecosystem.
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