Ondo Finance has partnered with Euler Finance to allow users to borrow PayPal's PYUSD stablecoin against their tokenized U.S. stocks. The integration makes Ondo's SPYon, TSLAon, and QQQon tokens available as collateral within specialized vaults on Euler, enabling holders to access liquidity without divesting from their equity positions.

This development marks a significant step in expanding the utility of real-world assets (RWAs) in the decentralized finance (DeFi) ecosystem. By collateralizing tokenized versions of major ETFs and stocks, the partnership bridges traditional financial assets with on-chain lending protocols. It provides a practical use case for stablecoins like PYUSD while creating new yield opportunities for its holders.

The move signals a growing trend of incorporating RWAs as high-quality collateral within DeFi. This not only enhances capital efficiency for asset holders but also deepens the pool of available assets for lending protocols, fostering a more mature and interconnected financial landscape.