Ondo Finance has partnered with Drift Protocol to integrate real-world assets (RWAs) on the Solana network, a significant milestone in the DeFi space. The partnership will allow Drift users to use USDY, a stablecoin backed by U.S. Treasury bills, as collateral for margin trading and borrowing, potentially boosting trading volume and liquidity on the platform.

The integration with Drift Protocol is a strategic move by Ondo Finance to expand its reach in the Asia-Pacific (APAC) region. By providing access to RWA-based tokens as collateral, the partnership aims to enhance the variety and reliability of assets that traders can use, further bridging the gap between traditional finance and DeFi.

Cindy Leow, the co-founder of Drift Protocol, expressed enthusiasm about the partnership, stating that "Ondo is an excellent partner for Drift because this partnership helps us on our way to making a completely on-chain trading platform where people can trade with any asset as collateral."

The use of USDY, which offers a 5.30% annual percentage yield, is seen as a crucial link between traditional finance and DeFi. By providing traders with the opportunity to generate returns on their investments and utilize them as collateral for trading, Ondo Finance and Drift Protocol are expanding the applications of RWAs in the DeFi ecosystem.

However, it's worth noting that USDY is currently not available to citizens of the United States or within the United States, as it has not been registered under the United States Securities Act. This limitation may impact the future growth and use of USDY in the global DeFi markets.

Despite the partnership announcement, the ONDO token has not been spared from the broader crypto market sell-off. In the last 24 hours, the ONDO price has declined by 3.78%, trading at $1.09. However, the surge in trading volume by 37% to $392,144,095 suggests that traders are taking advantage of the price dip to accumulate the token.