Zodia Custody has enabled institutional custody support for Ondo Finance’s yield-bearing USDY token, with plans to add OUSG compatibility in Q3 2025. This development allows regulated entities to securely hold tokenized US Treasuries through one of crypto’s most trusted custodians, accelerating institutional adoption of real-world asset (RWA) tokenization.
The move follows similar custody integrations from Komainu and Copper in April 2025, creating a competitive landscape for institutional-grade digital asset storage solutions. Ondo’s treasury-backed tokens now benefit from multi-jurisdictional compliance frameworks across major custody providers.
Ondo Finance’s USDY and OUSG represent over $800M in combined assets under management, according to the project’s website. These tokens provide blockchain-native exposure to short-term US government debt instruments while maintaining regulatory compliance.
Get breakout alerts
Install Coin Push to get profitable crypto trading notifications.
Zodia Custody’s Institutional Infrastructure
As a Standard Chartered-backed institution, Zodia brings bank-grade security protocols to Ondo’s tokenized assets. The custody solution supports the TON Blockchain’s Jetton token standard, enabling cross-chain interoperability for treasury management.
“Our integration with Ondo Finance demonstrates how traditional financial instruments can meet decentralized finance infrastructure,” said Anoosh Arevshatian, Zodia’s Chief Risk Officer. The partnership follows Zodia’s January 2025 collaboration with STON.fi to enable TON Blockchain asset custody.
Ondo Finance’s Tokenized Treasury Products
OUSG serves accredited investors through permissioned access to BlackRock’s US Treasury ETF, offering 24/7 redemptions via smart contracts. Its sibling token USDY provides global non-US investors with daily yield distributions from treasury collateral.
Key features of Ondo’s tokens include:
- Daily yield accrual paid in USDC
- SEC-registered underlying assets
- Chain-agnostic settlement via LayerZero
The project’s official documentation emphasizes compliance with money transmitter licenses across 48 US states.
Expanding Custody Ecosystem
Three major custodians now support Ondo’s tokens:
| Custodian | Assets Supported | Security Model |
|---|---|---|
| Zodia | USDY (OUSG coming) | Multi-sig cold storage |
| Komainu | OUSG, USDY | Regulated custody |
| Copper | OUSG, USDY | MPC technology |
BitGo extended support in Q1 2025 through its partnership with Ondo, creating redundancy for institutional clients. Copper’s Ben Lorente noted their MPC solution “meets Tier-1 bank security requirements” for treasury token storage.
The custody race highlights growing demand from:
- Family offices seeking yield alternatives
- Corporations managing treasury reserves
- ETF issuers creating blockchain-based products
Market analysts predict tokenized treasury products could capture 1-2% of the $26T US government debt market by 2026. Ondo’s early-mover advantage positions it as a likely beneficiary of this trend.
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
- Tokenized Treasuries
- Blockchain-based securities representing ownership in government-issued debt instruments. Enable fractional ownership and 24/7 trading.
- MPC Custody
- Multi-party computation security that splits private keys across multiple parties. Eliminates single points of failure in asset storage.
- Permissioned Asset
- Digital token with access restrictions based on investor accreditation status. Complies with securities regulations through whitelisting.
- Yieldcoin
- A stablecoin alternative that generates daily interest through collateralized lending or real-world asset backing. Combines price stability with yield generation.
