Tokenized bonds and treasuries
SOL ETHIn this lesson you'll see how "boring" but stable real-world yield — US government interest — flows straight into your crypto wallet through tokenized bonds.
A simple analogy
A bank pays little or nothing on the money in your account. But the government you lend money to pays real interest. A tokenized bond is a way to get that government interest on-chain, just by holding a single token in your wallet.
What is a tokenized bond?
The US government borrows money by issuing Treasury bills (T-bills) and bonds. Whoever holds them earns interest. It's one of the safest sources of yield in the traditional world.
Tokenization means such a bill gets "packaged" into an on-chain token. Instead of a complicated brokerage account, you simply hold a token in your wallet, and it earns real-world interest.
| Feature | Traditional T-bill | Tokenized (on-chain) |
|---|---|---|
| Where you hold it | Brokerage account | Crypto wallet |
| Access | Banks, funds | Anyone with a wallet |
| Operating hours | Exchange business hours | 24/7 |
| Source of yield | Government interest | The same interest |
USDY — the main example
USDY (OndoOndoOndo Finance — an RWA protocol (USDY, OUSG tokenized bonds).Read the lesson → Finance) is a tokenized treasury asset backed by US Treasury bills and bank deposits. Its annual yield is around 4.5%, and it works on both SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → SOL and EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson → ETH networks.
You've already seen USDY
USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → was mentioned briefly in Lessons 0-5 and 1-6. Here we go deeper: where that yield comes from, and how USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → fundamentally differs from a plain stablecoin.
The difference from a stablecoin (USDC vs USDY)
This is the most important idea in this lesson. Both are digital dollars, but they work differently.
A deposit vs cash
USDC — stands still. Always worth $1.00 and earns nothing. It's "cash" — great for swapping and paying.
USDY — slowly grows. Its price rises gradually because interest builds up "inside" it. It's a "deposit" — you hold it, and it earns.
Other players in the market
USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → isn't the only one. The tokenized-securities market is growing:
- Ondo Finance — the issuer of USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson →, one of the leaders in this space.
- Superstate — a tokenized-securities issuer focused on treasury funds.
- BlackRock BUIDL ETH — an institutional tokenized-treasury fund on the EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson → network. BlackRock is the world's largest asset manager, so its arrival on-chain shows this space is becoming serious.
Why this matters
When the biggest players from the traditional world (BlackRock) launch products on-chain, that's a signal — tokenized real-world assets (RWARWAReal World Assets — real-world assets (stocks, bonds, treasuries) represented as blockchain tokens.Read the lesson →) are stopping being an experiment and becoming infrastructure.
Why is it appealing?
- Stable, "boring" yield — the income comes from government interest, not crypto speculation.
- Lower volatility — the price swings far less than stocks or crypto.
- On-chain convenience — works 24/7, fits into DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → strategies, no broker needed.
A place in your portfolio
USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → (or a similar tokenized treasury) can be the "calm" part of a portfolio — a place to hold dollars that still work while you wait for an opportunity to buy elsewhere.
Once you understand this, you can look at any "dollar" token and immediately tell whether it's earning for you or just sitting there — and consciously choose where to hold which one.
What to check before choosing a tokenized treasury
The risk here is lower than for a tokenized stock, but not zero — and you can assess each part of it yourself before buying:
- You're trusting the issuer (the company that issued the token) → choose issuers that publicly disclose what backs the token and have a track record (e.g. OndoOndoOndo Finance — an RWA protocol (USDY, OUSG tokenized bonds).Read the lesson →)
- The regulatory environment is still taking shape → check whether the product is allowed in your jurisdiction before you buy
Every risk has an answer. This is NOT "there's no risk" — it's a lower risk than a tokenized stock, and you know how to assess it. More on these risks in Lesson 8-6.
In this task you won't buy anything — just explore and compare numbers. Takes about 10 minutes and costs nothing.
This is purely an exploration task — no money needs to move. Rates change constantly, so always rely on the current number, not one you remember.
This is learning, not investing — use only small amounts you treat as tuition.
You just lined up three yield numbers side by side and worked out the real difference — most people never even ask how much their dollars could be earning.
Note
This is an educational lesson, not investment or tax advice. YieldsYieldReturn, income. In DeFi, yield comes from LP fees, lending interest, and staking rewards. and prices change with central bank rates, and regulation for tokenized securities is still taking shape — check the current situation yourself.