More than one in every nine tokens of Ondo's Treasury-backed stablecoin USDY now reside on the Sei blockchain, according to a post on X. The concentration amounts to $259M across roughly 218M USDY tokens on Sei.
The scale of the holding shows how narrowly distributed some Treasury-backed stablecoins remain despite growth in adoption. USDY, an Ondo-issued token backed by a mix of short-duration U.S. Treasury securities and cash equivalents, has a total supply of roughly 1.98B tokens with a market value near $2.28B. That makes the Sei holding 11% of all USDY in circulation.
Sei, a Layer 1 blockchain focused on parallel computation, has emerged as a venue for Treasury-backed asset issuers seeking blockchain-native rails. The concentration on a single chain creates both liquidity depth for trading pairs and exposure to chain-specific operational or security events. Ondo issues USDY across multiple blockchains including Ethereum, Arbitrum, Base and others, but the Sei deployment has attracted the largest single share.
Treasury-backed stablecoins differ from algorithmic or collateral-backed designs; they maintain reserve accounts of actual Treasury holdings and fiat deposits. Ondo operates under an umbrella structure that includes Ondo Finance, a decentralized finance protocol, and Ondo U.S., which handles regulated issuance. The company has raised capital from venture investors including Pantera Capital and Mechanism Capital.
Sei's growth in total value locked and trading volume has accelerated through 2026, and multiple RWA-focused protocols have selected it as a deployment chain. The Sei holding of USDY represents the single largest concentration of the token on any individual blockchain by a significant margin.
The $259M concentration on Sei accounts for 11% of all USDY tokens, roughly equivalent to all USDY deployed on Ethereum minus the top holder address. Sei has retained this share of a major Treasury-backed stablecoin's supply.
The metric to watch is whether Sei's share of USDY holdings grows beyond 15% or contracts below 8% by the end of 2026.
