Circle announced that it has acquired Hashnote, a leading issuer of tokenized real-world assets, as the issuer of the $48 billion USDC stablecoin. This acquisition was completed during the World Economic Forum in Davos, Switzerland.
Hashnote’s USYC and Circle
Circle said in a press release that it has acquired Hashnote, which issues the $1.3 billion tokenized money market fund USYC. This move puts Circle at the forefront of integrating USDC and tokenized assets. The acquisition is in line with Circle’s strategy to integrate traditional financial markets with blockchain technology.
Hashnote’s USYC token has become the largest tokenized US Treasury product and will be integrated into Circle’s platform. This integration will enable USYC to be used as yield-generating collateral on digital asset exchanges, prime brokers and custodial services.
Additionally, Circle will deploy USDC on the Canton Network, which is designed for real-world asset transactions. Backed by traditional major financial institutions, the network processes $1.5 trillion in repo transactions monthly. Circle will provide convertibility between USDC and USYC, ensuring constant liquidity and efficient transaction solutions.
“We invented the tokenized cash flow and are now leading the way in tokenized money markets that will be vital to the global financial system of the future.” – Jeremy Allaire, Circle CEO
Partnership Established with Cumberland
As part of its expansion strategy, Circle partnered with Cumberland. Cumberland will provide settlement and collateral management services for institutional-grade digital asset transactions to increase liquidity for USDC and USYC.
This collaboration will accelerate the adoption of Circle’s stablecoins and tokenized assets on global trading platforms. The acquisition of Hashnote is seen as a transformative step in the evolution of tokenized money markets.
With the combination of USDC and USYC, Circle will create a unified system where cash and yield-generating assets are convertible into each other. Circle CEO Jeremy Allaire is positive about potential crypto-friendly policies, stating that he expects banks to offer crypto trading services and restrictive regulations such as SAB 121 to be removed.
“Joining Circle increases our ability to rapidly increase adoption by combining USDC and USYC,” said Leo Mizuhara, CEO of Hashnote.
These developments are considered an important step in achieving Circle’s strategic goals in cryptocurrency and tokenized assets.
This move by Circle aims to support broader acceptance of stablecoins and tokenized assets in the financial ecosystem.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
