Ondo Finance Revises USDY Strategy, Discontinues Minting on Select Networks

Ondo Finance has announced a significant operational update regarding its tokenized asset, USDY. Effective September 8, the platform will cease all new USDY minting activities on the Aptos and Noble blockchain networks. This change is specific to these two networks, and USDY operations on other supported chains will continue without interruption.

Who Is Impacted by This Change?

The decision directly affects users holding or minting USDY on Aptos and Noble. Furthermore, because USDY on Osmosis and Mantra is bridged from Noble via the Inter-Blockchain Communication protocol, holders within these ecosystems should also note the forthcoming adjustments.

The company has reassured the community that all outstanding USDY will remain fully backed by reserves throughout the transition period, prioritizing asset security. Comprehensive migration or exit paths have been established for every affected holder.

Detailed Pathways: Options Based on Holdings

The available actions differ depending on the size of a user's USDY balance:

  • Substantial Holders (≥1,000 USDY): You have the option to bridge your assets to other supported networks or redeem them directly with Ondo at net asset value. This redemption window is notably long, remaining open until September 8, 2027.
  • Smaller Holders (<1,000 USDY): The recommended path is to exit via liquidity available on third-party open markets. A 90-day transition period for this method is in place, ending on December 7, 2026.

Special Instructions for Osmosis & Mantra Users

If you hold USDY on Osmosis or Mantra, your process involves an additional step. You must first bridge your assets back to the Noble network, after which you can follow the rules outlined above based on your holding size. Alternatively, you may opt to exit directly on Osmosis using available third-party liquidity.

All impacted users are advised to review the official communication and plan accordingly to ensure a smooth asset transfer or redemption process.