STBL to leverage Ondo’s USDY as primary collateral to mint up to $50M USST

Core Insights - STBL.com has announced a strategic collaboration with Ondo Finance to mint up to $50 million in USST backed by Ondo's USDY, highlighting the integration of stablecoins with real-world asset tokenization [1][4]. Group 1: Tokenization and Stablecoins - Tokenization involves converting assets like cash or treasuries into tokens using blockchain technology, allowing for global access and automated financial services [2]. - Stablecoins, such as USST, are cryptocurrencies designed to maintain a stable value by being pegged to fiat currencies or commodities, differentiating them from more volatile cryptocurrencies [3]. Group 2: Collaboration Impact - The partnership signifies a trend where institutional-grade tokenized assets are expected to play a crucial role in the future of stablecoin reserves [4]. - Ondo Finance's USDY is positioned to enhance STBL's growth by providing quality collateral and governance, which are essential for scaling utility without compromising stability [4]. Group 3: STBL's Stablecoin Model - STBL's model separates principal and yield into two distinct instruments: USST, which is fully backed by principal value, and YLD, a yield-bearing NFT linked to the underlying real-world assets [5].