Circle Buys Hashnote, USYC; DRW
A press release titled, "Circle Announces Acquisition of Hashnote and USYC Tokenized Money Market Fund Alongside Strategic Partnership with Global Trading Firm DRW" states, "Circle Internet Group, Inc. a global financial technology company and stablecoin market leader, announced its acquisition of Hashnote -- the issuer of USYC incubated by Cumberland Labs -- which according to 3rd-party analysts RWA.xyz is the largest tokenized treasury and money market fund in the world [sic], with $1.52B deployed into USYC as of January 15, 2025. Circle intends to fully integrate USYC with USDC, offering seamless access between TMMF collateral and USDC, one of the world's most popular stablecoins. This will enable USYC to emerge as a preferred form of yield-bearing collateral on crypto exchanges, and also with custodians and prime brokers." Jeremy Allaire, CEO and Chairman of Circle, comments, "The integration of USYC and Hashnote into Circle's platform marks a major moment in the evolution of the stablecoin market, as cash and yield-bearing short-duration treasury bill assets become fungible and convertible at the speed of blockchains and crypto capital markets. 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. We helped invent tokenized cash, and are now leading the way in tokenized money markets, both of which we believe will become essential to the future of the global financial system. Circle's acquisition of Hashnote and our strategic partnership with DRW-affiliate Cumberland are crucial to driving and delivering these products at scale." Leo Mizuhara, CEO and Founder of Hashnote, adds, "Hashnote's beginnings are rooted in recognizing the pivotal role blockchain-based transparency and settlement would play in future financial transactions. Joining Circle increases our ability to rapidly scale adoption by pairing USDC, a widely-used, liquid payment and trading stablecoin, with USYC, a safe, Tokenized Money Market Fund for yield-bearing collateral." The release also says, "The deal is bolstered by a strategic partnership with DRW, one of the largest institutional crypto traders via its subsidiary Cumberland. As marquee products for its trading operation, Cumberland will expand its institutional-grade liquidity and settlement capabilities in USDC and USYC, where permitted. Cumberland's expertise and own use cases will help drive innovation in the use of these products for more efficient and seamless collateral management. USYC is already supported by many major digital asset trading firms and derivatives exchanges. Additionally, alongside these strategic deals, Circle is also announcing its planned deployment of native USDC on Canton, the leading public blockchain for fully private and secure financial applications. For more, see these Crane Data News articles: "Tokenized MMFs vs. Stablecoins" (11/25/24), "CoinDesk on Copper, Tokenized MMFs" (11/14/24), "Citi, Fido Demo Tokenized MMF, Swap" (11/5/24) and "UBS Launches Tokenized Money Fund" (11/4/24).
