Ondo Finance is narrowing the distribution footprint of its tokenized Treasury product USDY, ending new issuance on the Aptos and Noble networks as the company concentrates on blockchain ecosystems where it believes the product can generate greater utility. The move is notable for the broader tokenization market because USDY has grown into a multibillion-dollar product backed primarily by short-term U.S. Treasuries.

Ondo Is Ending New USDY Minting on Two Networks

Ondo Finance announced that it will stop minting USDY on Aptos and Noble effective September 8, 2026. The change does not affect USDY issued on the company’s other supported networks. According to TheStreet, Ondo currently has more than $2 billion in USDY deposits across multiple blockchain networks.

The decision does not represent an immediate shutdown of USDY itself. Ondo said the existing tokens will remain fully backed during the transition and that affected holders will have defined migration or exit routes. Holders with 1,000 USDY or more can bridge their tokens to another supported network or redeem directly with Ondo at net asset value, with that window remaining open until September 8, 2027.

For smaller holders, the process is different. Positions below 1,000 USDY can be exited through third-party market liquidity during a 90-day transition period ending December 7, 2026. TheStreet reports that Aptos holders can access liquidity through Hyperion, while Noble holders can use Osmosis.

The Decision Also Reaches Osmosis and Mantra

The impact extends beyond the two networks named in the announcement. USDY on Osmosis and Mantra was bridged from Noble through the Inter-Blockchain Communication protocol rather than minted natively. As a result, holders on those networks are indirectly affected by the decision to discontinue new USDY issuance on Noble.

Those users can bridge their USDY back to Noble and follow the applicable migration or redemption route, or use available third-party liquidity on Osmosis during the transition period. The structure gives larger holders substantially more time to reposition their holdings than smaller holders relying on secondary-market liquidity.

The distinction is important because stopping minting is fundamentally different from withdrawing an asset from a blockchain. Existing USDY does not automatically disappear from Aptos or Noble when new issuance ends. Instead, the change prevents additional supply from being created while providing mechanisms for existing holders to migrate or exit.

USDY Remains a Major Tokenized Treasury Product

The strategic significance of the decision becomes clearer when viewed against USDY’s broader growth. Ondo’s latest published data show approximately $2.14 billion of USDY outstanding against roughly $2.21 billion of underlying assets, implying a collateralization ratio above 105%. The underlying portfolio is predominantly U.S. Treasury securities.

Ondo describes USDY as a yield-bearing token designed to provide onchain access to returns generated by short-term U.S. Treasuries. The product is available across multiple blockchain ecosystems and is designed for uses including collateral, lending, trading and payments.

The company has also continued expanding USDY elsewhere. In August, Ondo announced that USDY had gone live on Tempo, a payments-focused Layer 1 incubated by Stripe and Paradigm. The expansion suggests that the company is not retreating from multichain distribution generally; rather, it appears to be becoming more selective about where USDY is deployed.

What the Consolidation Could Mean for Tokenized Assets

Ondo did not disclose a specific reason for ending new USDY issuance on Aptos and Noble. The company said it remains focused on expanding USDY’s utility across networks where tokenized assets can deliver the greatest value to users, developers and institutions. TheStreet characterized the decision as a potential consolidation of Ondo’s network footprint. :

That approach reflects a broader challenge for tokenized financial products. Supporting numerous blockchains can increase distribution and accessibility, but it can also fragment liquidity, development resources and institutional adoption. A tokenized Treasury product may become more commercially effective when liquidity and applications are concentrated on fewer, deeper ecosystems rather than spread across a large number of networks.

For investors in Israel and global digital-asset markets, the development is therefore relevant beyond Aptos and Noble. The important question is whether Ondo’s network strategy increasingly favors **liquidity depth, institutional adoption and payment infrastructure** over maximum blockchain coverage. The continued growth of USDY on other networks, alongside the migration activity from Aptos, Noble, Osmosis and Mantra, will provide an indication of whether this is simply a targeted optimization or the beginning of a broader restructuring of Ondo’s multichain strategy.