# USDY Is Now Live on Tempo Published: 2026-08-27T12:59:00.000Z Author: Ondo Finance Tags: USDY URL: https://ondo.finance/blog/usdy-is-live-on-tempo --- Permissionless tokenized Treasuries arrive on Tempo’s global payments layer. We're excited to announce that Ondo's U.S. Dollar Yield Token (USDY), the market-leading permissionless tokenized Treasury, is now live on Tempo, the payments-first Layer-1 blockchain incubated by Stripe and Paradigm. Bringing Yield to the Payments Layer Hundreds of trillions in value moves across global payment rails annually, and at any given moment a meaningful share of it sits idle inside payment flows. Payroll waits to be disbursed, merchant balances await settlement, and remittance corridors are pre-funded in advance. The money is always moving, but between movements it earns nothing. Historically, whatever yield that float generated went to banks and processors, never to the businesses who actually held the dollars. Today, that changes for businesses on Tempo. Value moving through Tempo can now earn Treasury-backed yield in a wallet, a treasury, or a payment flow. Purpose-Built Chain for Global Payments Tempo's architecture is purpose-built for: moving value at global scale. It provides core infrastructure for stablecoin settlement, commerce, and cross-border money movement. Key design choices: Sub-second finality: Payments settle in under a second, so transfers confirm at the speed users expect from modern payment apps, not the speed of legacy rails. Stablecoin-denominated fees: There's no volatile gas token. Fees are denominated in USD stablecoins and stay low and predictable, so businesses can price payment flows with certainty. Throughput built for payment scale: Dedicated payment lanes reserve blockspace for payment transactions, so payroll runs and disbursements execute predictably even when other network activity spikes. Permissionless Access to Tokenized Treasuries What makes USDY a natural fit for a payments network is that it works like the rest of the payments stack: it's permissionless. Unlike most tokenized Treasury products, which restrict transfers to whitelisted addresses and require every holder to onboard directly with the issuer, USDY is freely transferable onchain. Any eligible non-US business, or protocol can hold it, send it, and receive it, with no approval process standing between a payment and its recipient. For a payments chain, this distinction is everything. An allowlisted asset can't flow through payroll rails, merchant checkout, or remittance corridors, because every counterparty would need pre-clearance. In contrast, USDY can. Builders on Tempo can integrate USDY and support peer-to-peer transfers the same way they can for stablecoins, except the asset also earns US Treasury-backed yield. What this means for builders: A yield primitive for payments applications: Builders on Tempo can integrate USDY as a yield-bearing balance layer in wallets, neobank products, payroll rails, and merchant treasury tools. Secure and productive collateral: With institutional-grade backing, USDY can serve as reliable collateral in lending, trading, and liquidity-provision contexts. Seamless integration: Tempo builders can quickly and easily integrate USDY as productive collateral, treasury assets, or yield primitives into their applications. Dedicated liquidity: Dedicated market maker liquidity supports 1:1 exchange between USDY and stablecoins on Tempo. “Bringing USDY to Tempo puts institutional-grade yield directly into the payments layer. Every business transacting on Tempo can now hold dollars that earn between transactions, backed by short-term U.S. Treasuries. This is another key step toward establishing USDY as a core primitive of onchain finance,” said Ondo Finance’s Ian De Bode. “Global payment platforms already hold balances that sit idle between transactions. Launching Ondo's USDY on Tempo enables them to put those balances to work," said Eric Kang, GTM at Tempo. "Tempo Earn gives platforms control over how idle balances are used, and makes it simple to build rewards into existing products.” More To Come This launch marks a key milestone in USDY's multichain expansion, delivering yield-bearing dollar exposure with deep liquidity and seamless composability on a chain purpose-built for global payments and further embedding USDY as a core primitive of onchain finance. More ecosystem partnerships, integrations, and developer tooling are coming soon.