Binance to Accept Circle’s Yield-Bearing Stablecoin USYC as Institutional Collateral

Circle Internet Group, Inc. (NYSE: CRCL) has announced a new partnership with Binance, the largest global digital asset exchange, to bring the yield-bearing stablecoin USYC into Binance’s institutional trading platform.

USYC is now supported as off-exchange collateral for @binance institutional clients, unlocking more capital efficient yield with tokenized U.S. Treasuries.

✅ TMMF backed by U.S. Treasuries
✅ Near-instant fungibility with USDC

This collaboration brings the power of tokenized… pic.twitter.com/YHBq0w7eUC

— Circle (@circle) July 24, 2025

In a press release, the stablecoin issuer said this move allows Binance’s institutional clients to hold and use USYC—a tokenized money market fund (TMMF)—as off-exchange collateral for derivatives trades.

The arrangement closely mirrors traditional finance practices, allowing traders to unlock additional yield opportunities while maintaining capital flexibility.

USYC, which Circle acquired earlier this year, is positioned as a digital version of short-term U.S. Treasuries. It stands apart from traditional stablecoins like USDC and Tether by redistributing yield to holders.

Custody options for USYC will be provided through Binance Banking Triparty with authorized banks, or through Ceffu, Binance’s institutional-grade custody partner. The token will be issued natively on BNB Chain.

Rising Institutional Demand for Tokenized Treasuries

This latest update arrives as global interest in tokenized U.S. Treasury products continues to climb. The market for tokenized real-world assets—especially Treasuries—has nearly doubled in size since the start of 2025, says Circle.

Institutional traders are increasingly seeking out digital assets that combine stable value, predictable yield, and the programmability of blockchain-based finance.

Circle outlines the benefits of pairing USYC with USDC for capital flow. The two tokens are designed for convertibility, giving institutions the ability to shift between tokenized cash and yield-bearing assets with minimal delay.

Industry Leaders Align on Future of Capital Markets

Executives from both companies stressed the long-term vision behind the collaboration. Kash Razzaghi, Circle’s Chief Business Officer, explained that the partnership opens the door to more agile collateral strategies in digital asset markets.

Meanwhile, Catherine Chen, Binance’s Head of VIP & Institutional, stressed Binance’s commitment to providing trusted, high-efficiency tools for professional traders.

Stablecoin Market Hits $252B

On Tuesday, CertiK released a report stating that the first half of 2025 marked a new phase for stablecoins, as their total market supply surged from $204 billion to $252 billion, with monthly settlement volumes reaching $1.39 trillion.

Despite this, CertiK’s 2025 Stablecoin Report urges caution, revealing that this growth has exposed uneven security practices and regulatory preparedness across the sector.

Circle Price Action

Circle Internet Group, Inc. (NYSE: CRCL) has seen its share price decline sharply over the past five days, falling 10.31% to close at $202.41 as of July 24.

The stock opened the week near $225.67 but faced steady downward pressure, dipping as low as $195.08 before slightly rebounding. Pre-market trading showed a further dip of 1.26%, pointing to continued investor caution.

Despite the downturn, Circle maintains a hefty market cap of $45.04 billion, though the recent sell-off may reflect broader market reactions to macroeconomic conditions or skepticism surrounding Circle’s latest developments, including its integration of USYC with Binance.