Aptos Foundation announced the launch of Ondo US Dollar Yield (USDY), a new stablecoin developed on the Aptos blockchain and backed by US Treasury bonds. This new digital asset will be available for users outside the US and will benefit from the technological advantages offered by the Aptos blockchain.

However, it is not currently officially registered in the US under the Securities Act, indicating that regulatory processes in the US have not yet been completed.

Stablecoins are cryptocurrencies that retain their value relative to fiat currencies and are often intended to increase access to digital financial services.

Aptos Foundation’s statement emphasized the advantages of stablecoins in helping communities that lack access to financial services and democratizing finance.

As a low-risk digital asset, stablecoins are becoming an important tool for users, especially in regions where financial services are limited.

Among stablecoin issuers, Tether stands out for its Tether stablecoin, which is backed by US dollar reserves and US Treasury bonds.

In 2023, Tether announced that it held $72.5 billion in U.S. Treasury securities. This amount shows that stablecoins have become major financial assets and play an important role in the financial system.

Tether owns a large portfolio of US Treasury bonds, increasing the stablecoins’ capacity to provide liquidity and offer large-scale investment opportunities. This reinforces the role of stablecoins in traditional financial markets.

The potential benefit of stablecoins to the US dollar caught the attention of former US legislator Paul Ryan.

Ryan emphasized the role that dollar-backed stablecoins could play in increasing dollar demand amid geopolitical efforts to move away from the dollar in international trade payments.

This demand could sustain the US dollar’s dominance in the global financial system for decades. These developments show how stablecoins can be used as a tool to increase dollar demand while strengthening the dollar’s role in international trade.

In July, Binance.US became one of the last crypto companies to receive regulatory approval to invest client funds in U.S. Treasury securities.

The agreement includes a requirement that Binance.US deposit funds through a third-party custodian and not deposit customer funds back into Binance.US or Binance-related business operations.

This regulation aims to increase financial security by strengthening the integration of crypto companies with traditional financial instruments and expands investors’ access to traditional financial instruments.

Research strategist Tom Wan predicts that the tokenized US Treasury market will reach $3 billion by the end of 2024. Tokenized Treasury offerings are offered by major players such as BlackRock and Securitize.

BlackRock’s Institutional Digital Liquidity Fund (BUIDL) stands out as the world’s largest tokenized Treasury investment fund. This fund supports the growth of tokenized Treasury assets while providing liquidity to investors.

Stablecoins and tokenized Treasury assets will play an important role in the future of financial markets, blurring the boundaries between the traditional financial system and the crypto world.

This evolution will increase the accessibility of financial products and provide new opportunities for investors. This development of the cryptocurrency market changes the dynamics in the financial system, while also strengthening the integration between traditional and digital financial instruments.