USDO Reserves

USDO is backed by high-quality, liquid reserves, primarily consisting of U.S. Treasury bills and reverse repurchase agreements. These reserves are managed by OpenEden Digital ("OED") and are designed to ensure the stability and security of USDO. The reserves serve as the foundation for maintaining a 100% collateralization ratio, meaning every USDO token in circulation is fully backed by equivalent assets.

1. U.S. Treasury Bills: The majority of the USDO reserves are held in short-term U.S. Treasury bills in the form of on-chain TBILL tokens, which are widely regarded as one of the safest financial instruments available. These securities are backed by the U.S. government and provide predictable yield. By maintaining a portfolio of Treasury bills with a short average maturity, the reserve value remains stable, and the interest rate risk is minimised.

2. Reverse Repurchase Agreements (Reverse Repos): Reverse repos involve lending funds secured by collateral, typically U.S. Treasury securities, to trusted counterparties for short durations. This ensures that the reserves generate competitive returns while minimising exposure to credit and market risk.

The transparent and robust management of USDO reserves provides assurance to users that the token is fully backed by secure, liquid assets, thereby maintaining confidence in its value and stability. To learn more about our transparency practices, please visit the Transparency Section.