Key Takeaways
- This acquisition is set to integrate Hashnote’s US Yield Coin (USYC), with USDC stablecoin
- Circle intends to simplify the use of USYC as collateral on DeFi platforms while positioning USDC as a settlement tool for such transactions.
On Tuesday, Circle, announced the acquisition of Hashnote, a prominent issuer of tokenized real-world assets (RWAs). The deal was finalized the same day and unveiled at the World Economic Forum in Davos, Switzerland. Circle has not disclosed the financial specifics of the transaction.
This acquisition is set to integrate Hashnote’s US Yield Coin (USYC), a digital token backed by U.S. Treasury bills and short-term loans, with Circle’s USDC stablecoin. Circle’s CFO, Jeremy Fox-Geen, referred to the deal as a strategic move aimed at enhancing the synergies between USDC and tokenized money market assets. “We see having a tokenized treasury asset as complementary to USDC, especially in digital asset trading,” Fox-Geen explained.
Hashnote’s USYC token is one of the rapidly growing tokenized U.S. Treasury product. As per the official announcement, Circle intends to simplify the use of USYC as collateral on decentralized finance (DeFi) platforms while positioning USDC as a settlement tool for such transactions. The integration promises to improve trading efficiency and provide continuous liquidity between cash and collateral in blockchain ecosystems.
Circle’s CEO, Jeremy Allaire, described the acquisition as a critical step toward modernizing financial markets with blockchain technology. “This development is a significant milestone in aligning traditional market structures with the speed and transparency offered by blockchain,” Allaire said.
In tandem with the acquisition, Circle announced that its USDC stablecoin will now be issued natively on the Canton Network, a blockchain designed for tokenized RWA transactions and already utilized by major financial institutions. Circle reported that Canton has facilitated over $3.6 trillion in tokenized asset transactions to date.
Additionally, Circle has partnered with Cumberland, a crypto trading firm affiliated with DRW, to boost liquidity and expand the use of USYC as collateral across custodial platforms and trading exchanges. This collaboration is intended to enhance the adoption of tokenized money market funds, which remain a small segment of the broader money market landscape.
The acquisition comes as Circle continues to compete with Tether (USDT), the largest stablecoin by market share. In recent months, Circle has taken steps to strengthen USDC’s market presence, including a partnership with Binance to make USDC a key part of the exchange’s corporate treasury strategy. USDC has also reached $20 trillion in total transaction volume in recent months.
