KEY TAKEAWAYS
- Circle and Binance have partnered to support tokenized Real-World Assets (RWAs) for institutional clients.
- Binance’s institutional customers can now use Circle’s USYC as off-exchange collateral for derivatives trades.
- The collaboration addresses the growing demand for tokenized US Treasuries, enhancing capital efficiency with near-instant fungibility with USDC.
- USYC’s integration into Binance’s trading environment marks a significant advancement in institutional capital markets.
Circle Internet Group, Inc. (NYSE: CRCL) has announced a new collaboration with Binance, the leading blockchain ecosystem and digital asset exchange. The partnership aims to accelerate support for tokenized Real-World Assets (RWAs) among Binance’s institutional clients.
As part of this initiative, Binance’s institutional customers can now hold Circle’s USYC, a prominent tokenized money market fund (TMMF). This asset can be used as off-exchange collateral for derivatives trades, offering new opportunities for yield. The approach is modeled after traditional financial market practices.
USYC will be held with supporting banks through Binance Banking Triparty or with Ceffu, Binance’s institutional custody partner. Additionally, USYC will be natively issued on the BNB Chain, allowing users to explore the onchain world and the potential of tokenized traditional assets more seamlessly.
Growing Demand for Tokenized US Treasuries
The collaboration comes amid a surge in demand for tokenized interests in US Treasuries, which has nearly doubled since the beginning of 2025. USYC offers near-instant fungibility with USDC, enhancing capital efficiency for its users. This allows for near-real-time movement across tokenized cash and Treasuries.
Kash Razzaghi, Chief Business Officer at Circle, stated that USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency. He emphasized its suitability for modern collateral use in digital markets due to its near-instant redemption into USDC.
Enhancing Institutional Offerings
Catherine Chen, Head of Binance VIP & Institutional, highlighted the commitment to building secure and capital-efficient offerings for institutions. She noted that the integration of USYC into Binance’s trading environment marks a significant step forward in supporting the future of capital markets.
Further details about this collaboration can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Circle’s collaboration with Binance to support tokenized Real-World Assets (RWAs) for institutional clients marks a significant development in the integration of traditional finance with blockchain technology.
A recent CoinDesk report highlights the rise of tokenized U.S. Treasuries as a major trend in 2025, driven by increased adoption from financial institutions. This aligns with the Circle and Binance collaboration, which aims to leverage tokenized assets like USYC for enhanced capital efficiency and collateral use.
A BusinessWire report highlights expert opinions that view the Circle and Binance partnership as a strategic move to accelerate the adoption of USDC and other stablecoins. This supports the significance of the collaboration in advancing stablecoin use and integration in institutional finance.
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