Circle Acquires Hashnote and Integrates USYC for Digital Assets

Circle, a leading stablecoin issuer, announced on Tuesday its acquisition of Hashnote, the issuer of the US Yield Coin (USYC), as part of a broader initiative to integrate USYC with USDC and expand tokenized asset adoption.

Circle announced today the acquisition of Hashnote and USYC Tokenized Money Market Fund.

This strategic move, alongside a partnership with global trading firm DRW via @CumberlandSays and news that we’re bringing native USDC to the @CantonNetwork, is set to redefine the landscape…

— Circle (@circle) January 21, 2025

According to a statement by Circle, the acquisition includes a strategic partnership with DRW’s Cumberland unit.

This collaboration is intended to enhance Circle’s offerings in tokenized money markets and improve digital asset liquidity.

The Company’s Push for Tokenized Financial Integration

Hashnote’s acquisition places USYC, valued at $1.52 billion, as a vital collateral choice across both traditional and digital finance markets.

Meanwhile, Circle’s collaboration with Cumberland is set to drive broader adoption by enhancing liquidity for its stablecoins.

By integrating USYC with USDC, Circle seeks to create a smoother pathway between stablecoin liquidity and yield-generating collateral, reinforcing its utility across markets.

BREAKING NEWS:  3 big announcements from @circle. 

 1) We have acquired Hashnote, issuer of the world’s largest Tokenized Money Market Fund (USYC); 

2) we have entered into a strategic partnership with global trading firm DRW to drive USDC and USDY in  crypto and TradFi…

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) January 21, 2025

“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,” said Circle CEO Jeremy Allaire.

USYC is supported by tokenized short-term U.S. Treasury bills. Circle intends to position it as the preferred collateral option for exchanges, custodians, and prime brokers.

This effort aligns with the company’s broader strategy of expanding tokenized financial assets within the digital economy.

Circle Partners with DRW’s Cumberland to Enhance Liquidity

The partnership with Cumberland will enhance liquidity for USDC and USYC, facilitating their use in trading and collateral management.

Circle highlighted Cumberland’s role as a major liquidity provider in both traditional and digital markets.

In addition to these initiatives, Circle announced plans to deploy native USDC on the Canton blockchain network.

This initiative seeks to provide secure, private transactions while expanding the utility of USDC and USYC in traditional financial markets.

“By utilizing the Canton blockchain, which offers configurable privacy, for USDC, and acquiring Hashnote, which issues USYC, Circle unites the key elements necessary to enable 24/7 collateral and variation margin movement across both crypto and traditional markets,” said DRW founder Don Wilson.