USDY is an interest-bearing stablecoin based on U.S. Treasury bonds launched by Ondo, but it cleverly avoids the restrictions of the GENIUS Act that prohibit stablecoins from paying interest. This is because USDY’s price isn’t pegged 1:1 to the dollar—instead, it gradually rises above $1 as yields accumulate. So technically, it’s not paying you ‘interest’; you’re just holding a token that slowly increases in value . Essentially, it’s not a stablecoin but tokenized U.S. Treasury bonds. USDY has now been listed on Sei and can be used for staking, lending, and other DeFi activities on Sei .