Stablecoin issuer Circle announced its acquisition of Hashnote, the company behind US Yield Coin (USYC), the largest tokenized treasury and money market fund.
As of January 15, 2025, USYC manages $1.52 billion, according to RWA.xyz. The acquisition is a strategic move to integrate USYC with Circle’s $49 billion stablecoin, USD Coin (USDC).
The integration seeks to drive seamless interoperability between cash-like assets and yield-generating financial products, better positioning Circle in the tokenized finance ecosystem.
Apart from the acquisition, Circle announced a strategic partnership with DRW, a well-known trading firm, and its crypto subsidiary Cumberland.
Stablecoin issuer Circle also announced plans to deploy USDC on the Canton Network, a blockchain designed for secure, private financial transactions. With USYC already operational in Canton, adding USDC will enable seamless convertibility between cash and tokenized collateral.
The Canton Network, originally developed by Digital Asset—a firm founded by DRW—has found some traction among institutional investors. This permissioned blockchain could offer a regulatory-friendly environment for institutions to experiment with tokenized collateral, potentially easing the CFTC's concerns before moving to permissionless systems.