Crypto firm Circle Internet Group has acquired Hashnote, the issuer of US Yield Coin (USYC), the largest tokenised treasury and money market fund in the world.
Circle says it will fully integrate USYC with USDC, its $48 billion stablecoin. This, says the firm, will enable the $1.52 billion USYC to emerge as a preferred form of yield-bearing collateral on crypto exchanges, and also with custodians and prime brokers.
Jeremy Allaire, CEO, Circle, says: "The integration of USYC and Hashnote into Circle’s platform marks a major moment in the evolution of the stablecoin market, as cash and yield-bearing short-duration treasury bill assets become fungible and convertible at the speed of blockchains and crypto capital markets. This is a huge unlock for a market that is increasingly being driven by institutional adoption, and where participants increasingly expect market structures that are common in TradFi.
"We helped invent tokenised cash, and are now leading the way in tokenised money markets, both of which we believe will become essential to the future of the global financial system."
The acquisition is also being bolstered by a strategic partnership with DRW, one of the largest institutional crypto traders via its subsidiary Cumberland. Cumberland will expand its institutional-grade liquidity and settlement capabilities in USDC and USYC, where permitted.
In another move, Circle is prepping deployment of native USDC on Canton, the public blockchain used by major traditional banks, trading firms, asset managers and exchanges.