Sharlife is a Registered Shariah Advisory Firm with Securities Commission Malaysia - The only regulated provider of crypto & stocks Shariah status
Sharlife is a Registered Shariah Advisory Firm with Securities Commission Malaysia - The only regulated provider of crypto & stocks Shariah status
USDY is the world's first freely transferable yield-bearing token secured by US Treasuries, offering the utility of stablecoins with safe daily yield.
USDY is the world's first freely transferable yield-bearing token secured by US Treasuries. It accrues yield daily, whether you're staking, borrowing, pledging, or just holding it. Unlike traditional stablecoins, USDY is an "accumulating" token that reflects income in the form of an increasing share price.
USDY is over-collateralized with third-party reserve attestations published daily, providing transparency and security for holders.
Investors in USDY have a "first security interest" in USDY's underlying bank deposits and Treasuries, with Ankura Trust acting as the collateral agent. Control agreements between Ankura Trust and each custodian holding USDY's backing assets give Ankura the legal right to take control of assets and repay tokenholders upon certain default events, subject to USDY Tokenholder approval.
USDY generates yield from its underlying assets:
Yield from short-term U.S. government debt securities
Interest earned on cash held in banking institutions
Yield reflected through increasing token share price
Not permissible from a Shariah perspective
USDY is considered non-compliant from a Shariah perspective for the following reasons:
Muslims should avoid USDY as its core mechanism of generating and distributing yield through interest-bearing instruments is fundamentally at odds with Shariah principles prohibiting riba.
| Reserve Assets | Cash, Bank Deposits, US Treasury Bills |
|---|---|
| Yield Source | Treasury Bills, Bank Deposits |
| Collateral Agent | Ankura Trust |
| Issuer | Ondo USDY LLC |
Institutional-grade DeFi
USDY's legitimacy is supported by a first security interest in its underlying bank deposits and U.S. Treasuries, with Ankura Trust acting as the collateral agent. Control agreements between Ankura Trust and the banks and custodians holding USDY's backing assets ensure legal oversight.
In the event of default, inadequate capitalization, or bankruptcy of Ondo USDY LLC, Ankura Trust, with USDY Tokenholder approval, has the legal authority to take control of the assets and repay tokenholders, reinforcing transparency and investor protection.
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