Circle Hashnote, USYC has acquired an onchain money fund
Stablecoin issuer Cirque Internet Financial has acquired Hashnote, the real-world asset (RWA) issuer of the US Yield Coin (USYC).
In the year In a January 21 announcement, Circle said the agreement would allow USYC to emerge as a preferred option on crypto exchanges as well as with custodians and prime brokers.
Hashnote's USDY is the most popular tokenized currency by market capitalization, with a total value locked (TVL) of around $1.25 billion, according to data provider RWA.xyz.
As part of the deal, the stablecoin issuer has partnered with DRW, one of the largest institutional crypto traders. “[DRW] It will expand institutional-level liquidity and settlement capacity at USDC and USYC to facilitate “more efficient and seamless securities management.”
“Club intends to fully integrate USYC with USDC, providing seamless access between TMMFs. [tokenized money market fund] Warranty and USDC,” the ad said.
Top T-Bill issuers at TVL. Source: RWA.xyz
A growing market
With a market capitalization of approximately $48 billion, Circle's USD Coin (USDC) is the second most popular stablecoin after Tether's USDt (USDT), which has a market capitalization of approximately $138 billion as of January 21, according to Koingeco.
Circle USDC has been on the rise since December in Tether markets over USDT amid questions surrounding compliance with the Crypto-Assets Regulation (MiCA), the European Union's regulatory framework to regulate and regulate the crypto market.
Tokenized RWAs — digital tokens that represent claims on everything from U.S. Treasury bonds to artwork — are a $30-trillion market opportunity globally, Colin Butler, Polygon's global head of institutional capital, told Cointelegraph in August.
Demand for money market funding products, which include U.S. Treasury bills (T-bills) and other highly liquid yielding assets, is increasing.
Hashnote's USDY major competitors include BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Onchain US Government Fund (FOBXX), with approximately $630 million and $525 million in TVL, respectively.
In a report released in October, the US Treasury Department said the T-Bill token could “bring about both operational improvements and innovation in the Treasury market” but could also threaten financial stability.
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