Overview

• STBL and Ondo announced a deal on October 10 that enables up to $50 million in USST issuance using USDY as primary collateral.
• USDY is a yield-bearing token backed by short-term U.S. Treasuries and bank deposits, featuring a first-priority security interest overseen by an independent collateral agent.
• STBL separates principal and yield so USST functions as a non-yielding payment token while a distinct YLD token holds the yield rights.
• Issuer and custodian allowlists streamline KYC processes and keep yield distribution within defined compliance zones as USST circulates across DeFi.
• Peg stability and risk management rely on mint-and-burn mechanics and on-chain governance that can adjust parameters such as redemption spreads and fee routes.