Crypto firm Circle Internet Group has acquired Hashnote, the issuer of US Yield Coin (USYC), the largest tokenized treasury and money market fund globally.
Circle plans to fully integrate USYC with USDC, its $48 billion stablecoin. This integration is expected to position the $1.52 billion USYC as a favored source of yield-bearing collateral on crypto exchanges, as well as with custodians and prime brokers.
Jeremy Allaire, CEO of Circle, stated, “Integrating USYC and Hashnote into Circle’s platform signifies a significant advancement in the evolution of the stablecoin market, where cash and yield-bearing short-duration treasury bill assets become fungible and convertible at the speed of blockchains and crypto capital markets. This represents a substantial opportunity for a market increasingly influenced by institutional adoption, where participants anticipate market structures similar to those in traditional finance.”
He added, “We were pioneers of tokenized cash and are now at the forefront of tokenized money markets, both of which we believe will be vital to the future of the global financial system.”
The acquisition is further strengthened by a strategic partnership with DRW, one of the largest institutional crypto traders through its subsidiary Cumberland. Cumberland will enhance its institutional-grade liquidity and settlement capabilities in USDC and USYC, where applicable.
In addition, Circle is preparing to launch native USDC on Canton, the public blockchain utilized by leading traditional banks, trading firms, asset managers, and exchanges.