KEY TAKEAWAYS
- Circle Internet Group acquires Hashnote to enhance its stablecoin offerings and strengthen its position in digital asset markets.
- The acquisition includes US Yield Coin (USYC), the largest Tokenized Money Market Fund, which will be integrated with Circle’s USDC.
- A strategic partnership with DRW aims to boost institutional liquidity and settlement capabilities for USDC and USYC.
- Circle plans to deploy native USDC support on the Canton Network, expanding its reach in traditional finance markets.
Circle Internet Group, Inc., a leading financial technology company in the stablecoin market, has announced its acquisition of Hashnote, the issuer of the US Yield Coin (USYC). This strategic move is expected to accelerate Circle’s product offerings and strengthen its competitive position in digital asset capital markets. The announcement was made here.
USYC, recognized as the largest Tokenized Money Market Fund (TMMF) globally, will play a crucial role as collateral in digital asset markets. As of January 15, 2025, USYC has $1.52 billion deployed, according to third-party analysts RWA.xyz. Circle plans to integrate USYC with its widely-used stablecoin, USDC, facilitating seamless access between TMMF collateral and USDC.
Strategic Partnerships and Market Integration
The acquisition is complemented by a strategic partnership with DRW, a major institutional crypto trader through its subsidiary Cumberland. This partnership aims to support the adoption of USDC and USYC by expanding institutional-grade liquidity and settlement capabilities. Cumberland’s expertise is expected to drive innovation in collateral management, enhancing efficiency and seamlessness in the use of these products.
Circle’s CEO and Chairman, Jeremy Allaire, emphasized the significance of this integration, stating that it marks a pivotal moment in the stablecoin market’s evolution. He highlighted the importance of making cash and yield-bearing short-duration treasury bill assets fungible and convertible at blockchain speed.
Expanding TradFi Market Reach
In addition to the acquisition, Circle announced its planned deployment of native USDC support on the Canton Network. Canton is a leading public blockchain for private and secure financial applications, already used by major traditional banks and trading firms. This integration will enable 24/7 convertibility between collateral and cash for use in traditional finance (TradFi) markets on-chain.
Leo Mizuhara, CEO and Founder of Hashnote, expressed that joining Circle would enhance their ability to scale adoption by pairing USDC with USYC, providing a safe, tokenized money market fund for yield-bearing collateral.
Don Wilson, CEO and Founder of DRW, expressed enthusiasm about the partnership, noting the potential for public blockchains to enhance the efficiency and resilience of traditional finance.
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