How to Invest in Tokenized Treasuries
Tokenized treasuries allow you to earn U.S. Treasury yields directly onchain, combining the safety of government securities with the accessibility of DeFi. This guide walks you through the process of acquiring tokenized treasury products like USDY and OUSG.
What Are Tokenized Treasuries?
Tokenized treasuries are blockchain tokens backed 1:1 by U.S. Treasury bills, notes, or money market funds. When you hold these tokens, you own a claim on real treasury securities managed by the issuer. Current yields range from 4.8% to 5.3% APY depending on the product.
Key Products Overview
| Product | Issuer | APY | Minimum | U.S. OK? |
|---|---|---|---|---|
| USDY | Ondo | 5.2% | $0 | No |
| OUSG | Ondo | 5.3% | $100k | Accredited only |
| USDM | Mountain | 5.0% | $0 | No |
| bIB01 | Backed | 4.8% | $0 | No |
Prerequisites
Before you begin, ensure you have:
- A non-custodial wallet (MetaMask, Rabby, or WalletConnect-compatible)
- USD or USDC for investment
- Valid government ID for KYC verification
- Proof of address (utility bill, bank statement)
- Non-U.S. residency for most products (OUSG available to U.S. accredited investors)
Time Estimate
The entire process takes approximately 15-30 minutes for KYC approval, plus any waiting periods for minting.
Important Considerations
Tokenized treasuries offer compelling yields but come with trade-offs versus traditional treasury ownership:
Advantages:- 24/7 trading and DeFi integration
- Fractional ownership (no minimums for many products)
- Multi-chain availability
- Faster settlement than traditional markets
- Counterparty risk (trusting the issuer)
- Smart contract risk
- Geographic restrictions for most products
- Potential regulatory changes
Next Steps After Acquisition
Once you hold tokenized treasuries, consider:
- Use as Collateral: Deposit on Morpho, Aave, or other lending protocols
- Provide Liquidity: Earn additional fees in USDY/USDC pools
- Hold and Earn: Simply hold and let yield accrue
- Track with Fensory: Monitor your positions alongside other DeFi holdings
Security Best Practices
- Only interact with official protocol websites
- Verify contract addresses on block explorers
- Start with a small test transaction
- Keep large holdings in hardware wallets
- Enable all available security features (2FA, etc.)
[Start Tracking →](https://www.fensory.com)
Step-by-Step Instructions
Choose Your Tokenized Treasury Product
Select the product that best fits your needs based on yield, minimum investment, and chain availability. USDY is recommended for beginners due to its accessibility and multi-chain support. OUSG is for institutional investors with $100k+ and accreditation.
Tips
- ✓USDY is available on Ethereum, Solana, Arbitrum, and more
- ✓Compare current yields - they update based on treasury rates
- ✓Check which chains you want to use the tokens on
Warnings
- ⚠Most products exclude U.S. residents
- ⚠OUSG requires accredited investor status
Complete KYC Verification
Visit the issuer website (e.g., ondo.finance for USDY) and complete identity verification. You will need to provide government ID, proof of address, and answer compliance questions. This typically takes 10-30 minutes and approval is often within 24 hours.
Tips
- ✓Have documents ready before starting
- ✓Use a clear photo/scan of your ID
- ✓Proof of address must be recent (within 3 months)
Warnings
- ⚠Providing false information is fraud
- ⚠KYC approval may take up to 48 hours in some cases
Fund Your Account
Once KYC is approved, deposit USD via wire transfer or crypto (USDC) depending on the protocol. Ondo supports both fiat wire transfers and USDC deposits. Follow the instructions provided for your chosen funding method.
Tips
- ✓USDC deposits are faster than wire transfers
- ✓Include any required reference codes in wire transfers
- ✓Keep gas funds (ETH/SOL) for transaction fees
Warnings
- ⚠Double-check deposit addresses
- ⚠Wire transfers may take 1-3 business days
Mint Tokenized Treasury Tokens
After funding, initiate the minting process through the protocol interface. Some products like USDY have a 40-day waiting period for new mints, while others are instant. You will receive tokens in your connected wallet upon completion.
Tips
- ✓USDY has a 40-day holding period before transfer
- ✓Some protocols offer instant minting for a fee
- ✓Track your mint request status in the protocol dashboard
Warnings
- ⚠Do not expect instant liquidity with USDY minting
- ⚠Verify the token contract address matches official documentation
Verify and Secure Your Position
Confirm your tokenized treasury tokens appear in your wallet. For appreciating tokens (USDY, OUSG), your balance stays the same but value increases. For rebasing tokens (USDM), your balance increases daily. Consider moving large positions to hardware wallet.
Tips
- ✓Add the token to your wallet manually if it does not appear
- ✓Check value on protocol dashboard or DeFi dashboard like Fensory
- ✓Yields accrue automatically - no action needed
Warnings
- ⚠Never share your wallet seed phrase
- ⚠Be cautious of phishing sites impersonating protocols