Circle buys tokenised USYC tokenised money market fund issuer Hashnote

• USDC Stablecoin issuer Circle has acquired the USYC tokenised money market fund issued by Hashnote

• Circle will integrate the USYC tokenised money market fund with its USDC Stablecoin

• The integration will enable cryptocurrency traders to switch easily on-chain between tokenised cash and tokenised interest-bearing collateral

USDC issuer Circle has acquired Hashnote, the issuer of the US Yield Coin (USYC) tokenised money market fund, which currently has US$1.52 billion in assets under management.

Circle says it will integrate USYC with USDC, to offer customers “seamless access” between the USYC tokenised money market fund and the USDC Stablecoin. In practical term, it means cryptocurrency exchange traders can capture yield on on-chain assets by using USDC to buy USYC, as well as post USYC as collateral to borrow from prime brokers.

“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,” says Jeremy Allaire, CEO and Chairman of Circle. “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.”

Hashnote was founded by Cumberland Labs, the venture capital arm of Cumberland, the wholly owned cryptocurrency subsidiary of principal trading firm DRW that transacts cryptocurrency business for its parent company.

“Hashnote’s beginnings are rooted in recognizing the pivotal role blockchain-based transparency and settlement would play in future financial transactions,” says Leo Mizuhara, CEO and Founder of Hashnote. “Joining Circle increases our ability to rapidly scale adoption by pairing USDC, a widely-used, liquid payment and trading Stablecoin, with USYC, a safe, tokenised money market fund for yield-bearing collateral.” 

USYC is already used by digital asset trading firms and derivatives exchanges but, to accelerate expansion, Cumberland has undertaken to increase its use of USDC and USYC in its normal activities “where permitted … for more efficient and seamless collateral management.” 

Jeremy Allaire added: “‍Circle’s acquisition of Hashnote and our strategic partnership with DRW-affiliate Cumberland are crucial to driving and delivering these products at scale.”