Circle to Bring Hashnote Tokenized Money Market Fund Under Bermuda’s Regulatory Oversight

Circle Internet Group, the firm behind the USDC stablecoin, announced plans on Thursday to bring its newly acquired Hashnote Tokenized Money Market Fund (TMMF) under Bermuda’s regulatory oversight.

“Bermuda is the natural choice as regulator and home for USYC and our tokenized money market operations,” –@jerallaire

With our long-standing comprehensive licensing from the Bermuda Monetary Authority, we are sharing plans to bring recently acquired Hashnote TMMF under our… pic.twitter.com/hrz7fzoxoA

— Circle (@circle) March 13, 2025

Circle is expanding its regulatory framework by integrating USYC, one of the largest tokenized money market funds, into its existing Digital Assets Business Act (DABA) license.

Circle Bermuda’s Tokenized Money Market Fund Integration

Circle cited its long-standing relationship with the Bermuda Monetary Authority (BMA), which first granted it a comprehensive license in 2021, as a key factor in its decision.

USYC, issued by Hashnote, has nearly $1 billion in deployed assets as of March 6, 2025.

Circle expects this integration to increase USYC’s use as collateral among crypto exchanges, custodians, and prime brokers.

Jeremy Allaire, CEO and Co-founder of Circle, stated that Bermuda’s regulatory approach aligns with the company’s operational goals for USYC.

“The Bermuda Monetary Authority offers a forward-thinking regulatory environment that fosters trust, compliance and transparency in the digital asset space,” Allaire said.

How Tokenized Financial Products Are Shaping Regulation

The integration of USYC and USDC is designed to improve liquidity between digital assets and traditional financial instruments.

Bermuda’s regulatory environment has structured policies for tokenized finance under the Digital Assets Business Act (DABA).

Tokenized money market funds like USYC offer investors a way to access traditional financial instruments with the added efficiency, transparency, and accessibility of blockchain technology.

This move aligns with the increasing institutional interest in real-world asset (RWA) tokenization, which has become a focal point for firms seeking regulatory clarity.

Circle Bermuda’s Regulatory Moves and Global Expansion

Circle became the first firm to receive authorization under DIFC’s newly established crypto token framework, which is part of Dubai’s effort to develop its digital asset sector.

🌟 @circle's USDC and EURC gain regulatory approval in Dubai, marking a significant step in the UAE's push to become a global hub for digital assets. #USDC #Dubaihttps://t.co/coSOx2N3Bl

— Cryptonews.com (@cryptonews) February 24, 2025

The UAE’s Central Bank has introduced regulations for local stablecoins, including the AED Stablecoin, as part of its broader oversight of digital assets.

Tether’s recent moves also reflect the growing competition in the stablecoin space.

The company has aggressively expanded its presence in the UAE, announcing a partnership to launch a dirham-pegged stablecoin.

🇦🇪 Tether is launching its Dirham-pegged stablecoin on TON Blockchain, according to Alessandro Giori, senior strategic partnership manager at Tether. 
#TheGateway2024 #Stablecoinshttps://t.co/4h6wsY8FGQ

— Cryptonews.com (@cryptonews) November 1, 2024

Institutional interest in stablecoins has increased, with jurisdictions such as Bermuda and the UAE developing regulatory frameworks for the sector.

With Circle and Tether expanding their footprints in different regulatory environments, their competition will likely influence the development of stablecoin frameworks and cross-border digital finance in 2025 and beyond.