RWA expansion is gaining momentum: Grvt builds a $100M position in USDY, Coinbase opens a tokenization hub in Abu Dhabi
The real-world asset (RWA) tokenization sector continues to demonstrate explosive growth, and recent developments only confirm this. Hybrid CeDeFi platform Grvt has officially announced a strategic partnership with issuer Ondo Finance. Over the next twelve months, the exchange intends to grow its position in the tokenized USDY product to $100 million. This is not just a speculative bet, but a well-thought-out step to integrate institutional US Treasury bonds into its ecosystem.
The key element of the deal is embedding an annual percentage yield (APY) of 3.5% into the base rate of the Grvt Earn product. Platform users making deposits will receive passive income, which will consist of USDY yield and already existing liquidity sources, including integration with the Aave protocol. In essence, Grvt is turning classic yield farming into a more reliable instrument backed by real government bonds.
Analyzing Ondo's current metrics, I note that the platform's total assets under management (AUM) stand at approximately $2.59 billion. The bulk of this comes from USDY — $2.1 billion, distributed across eight blockchain networks. The OUSG product, available only to qualified US investors, accumulates another $500 million. Thus, Grvt's planned $100 million position would constitute roughly 3.8% of current USDY AUM — this is a serious commitment that could significantly impact the product's liquidity and distribution.
This partnership is a vivid marker of a paradigm shift. Tokenized Treasury bonds are ceasing to be just an "investment product" for geeks and are becoming a foundational infrastructure layer for all of DeFi. For Ondo, this solves the critical distribution problem that has long constrained USDY's scaling. The integration with Grvt Earn is an elegant way to expand reach without the need to directly enter the retail market with its regulatory costs.
Let me remind you that Grvt operates on the ZKsync L2 solution and raised $19 million in a Series A back in September 2025. The GRVT token TGE took place on July 30, 2026, making this partnership the first major step after the listing.
In parallel, Coinbase is strengthening its position in the Middle East. The company has officially announced the opening of an international tokenization hub in Abu Dhabi, having obtained a license from the Financial Services Regulatory Authority of the International Financial Centre. This will allow the exchange to offer digital securities backed by underlying equities outside US jurisdiction. Given that Coinbase already has a derivatives business in Dubai, the UAE is becoming a second key foothold for the giant's international expansion.
My take: We are witnessing market consolidation. Major players are not just experimenting with RWAs but building full-fledged financial products on their basis. Integrating Treasury bond yields into DeFi protocols is a bridge that will attract institutional capital to cryptocurrencies, which previously feared high volatility. However, it is worth remembering that such deals also carry risk: dependence on a single issuer (Ondo) and the Fed's rate environment could create new systemic vulnerabilities for platforms like Grvt.