Stablecoin lender Circle has brought the world’s largest crypto money market account under its power following its acquisition of lender Hashnote for an undisclosed amount.  

USYC, or the Hashnote Short Duration Yield Coin, is backed by U. S. Treasury bill and reverse buy agreements, with a complete asset worth of over$ 1. 25 billion, according to RWA information.

It comes as many businesses seek to faucet into an expected profitable growth for real-world resource tokenization. The shift is even expected to boost Circle’s standing against foe and cryptocurrency large Wire, which launched its verification system, Hadron, in November.

Supporting the connectivity, Circle has partnered with DRW company Cumberland, a big administrative crypto trading company, which will support the integration between the fund and Circle’s stablecoin, USDC.

Cumberland will increase profitability and negotiation capabilities for USDC and USYC in a bid to generate broader adoption in both crypto and conventional capital markets, according to a statement on Tuesday.

The connectivity is expected to house USYC as a favored yield-bearing credit for exchanges, custodians, and perfect brokers in both crypto and conventional finance markets, Circle said.

Speaking on the partnership, Circle’s CEO Jeremy Allaire said Tuesday on X there exists an “enormous opportunity ” to “bring yield-bearing collateral to crypto market structures ” around the clock.

“One of the Holy Grails of capital markets is the ability to move between cash and collateral instantly, ” he said. “We are unlocking this with a focus on the well-established crypto capital markets. ”

TMMFs are blockchain-based digital versions of traditional financial assets, such as Treasury bills, offering faster ways to invest in yield-generating instruments.

Plans to deploy native USDC on Canton, a blockchain tailored for secure and private financial applications, were also announced. Canton processes over$ 3. 6 trillion in tokenized RWAs and facilitates more than$ 1. 5 trillion in monthly repo transactions, the companies said.

The tokenization of real-world assets, which converts ownership rights of physical assets into blockchain-based tokens, is gaining traction.

The total value locked in the sector has risen 36. 9 % in a year to$ 7. 89 billion, as per DeFiLlama data. That’s expected to balloon to more than$ 50 billion by some estimates.

Spying an early opportunity, the world’s asset manager, BlackRock, launched a fund of its own on Ethereum in March of last year, allowing qualified investors to earn U. S. dollar yields.  

Dubbed the BlackRock USD Institutional Digital Liquidity Fund ( BUIDL), the vehicle reportedly contains more than$ 500 million in assets under management.

“Circle is leading the way in bringing the most important building blocks of money onchain, fostering a more scalable model of global institutional adoption of crypto infrastructure, while also paving the way for onchain money to become the core of traditional financial markets, ” Allaire said in his post.

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