Circle, the issuer of one of the largest stablecoins, USDC, has announced the acquisition of Hashnote, the company behind the USYC Token.
According to RWA.xyz, USYC is the world’s largest tokenized treasury and pre-market fund, managing $1.52 billion in assets.
USYC and USDC Integration: Implications for the Markets
Circle plan fully integrates USYC with USDC, creating a unified bridge between Tokenized money market assets and one of the world’s most liquid stablecoins. This will allow USYC to act as yield collateral on cryptocurrency exchanges as well as between custodian banks and major brokers.
Circle CEO Jeremy Allaire called the integration of USYC and Hashnote into the Circle platform an important step for the stablecoin market.
“We helped invent tokenized cash and are now leading the way in tokenized currency markets, both areas that we believe will become essential to the future of the global financial system. bridge. Circle’s acquisition of Hashnote and our strategic partnership with DRW’s Cumberland are critical to accelerating and deploying these products at scale,” he added.
USYC is a Tokenized money market fund that combines high yield and security, providing investors access to short-term Treasury obligations. Backed by major trading firms and derivatives exchanges, USYC is emerging as a valuable tool for effective collateral management.
“Joining Circle enhances our ability to rapidly expand adoption by combining USDC, a liquid stablecoin widely used in payments and trading, with USYC, a Money Markets fund Secure tokenized currency for profitable collateral,” said Leo Mizuhara, founder and CEO of Hashnote.
A key component of the deal is Circle’s strategic partnership with Cumberland, a DRW company and one of the largest institutional cryptocurrency traders. Cumberland will expand liquidity and improve settlement processes for USDC and USYC wherever possible.
As part of its service expansion, Circle also announced the launch of native USDC on Canton, a leading public network for privacy and security financial applications. Canton supports over $3.6 trillion in Tokenized assets and $1.5 trillion in monthly repo activity and is used by leading banks, asset managers, and exchanges.
The integration of USYC and USDC with Canton will ensure 24/7 asset availability and instant conversion between collateral and cash across traditional financial markets operating on blockchain technology.
CryptoQuant recently reported that USDC liquidity reached its highest level since February 2023 after minting over 250 million tokens. Analysts speculate that this is related to the partnership between Circle and Cumberland.