Circle acquires Hashnote for $1.25B money fund

Circle Internet Financial has announced the acquisition of Hashnote, the issuer of the US Yield Coin (USYC), a significant player in the tokenised real-world asset market.

This acquisition was made public on January 21, 2025, and positions USYC as a preferred yield-bearing collateral on crypto exchanges and with custodians.

Hashnote's USDY is recognised as the largest tokenised money market fund by market capitalisation, boasting a total value locked (TVL) of approximately $1.25 billion.

Circle aims to fully integrate USYC with its USD Coin (CRYPTO:USDC), which currently holds a market capitalisation of around $48 billion, making it the second-largest stablecoin after Tether’s USDT (CRYPTO:USDT).

“The integration of USYC and Hashnote into Circle’s platform marks a major moment in the evolution of the stablecoin market,” stated Jeremy Allaire, CEO and Chairman of Circle.

He emphasised that this integration will allow cash and yield-bearing short-duration treasury bill assets to become fungible and convertible at blockchain speeds.

The acquisition is further supported by a strategic partnership with DRW, a prominent institutional crypto trader.

DRW's subsidiary, Cumberland, will enhance its liquidity and settlement capabilities for both USDC and USYC.

Allaire noted that this partnership is crucial for driving innovation in collateral management.

The move comes amid increasing demand for tokenised money market funds that include highly liquid assets like US Treasury bills.

As institutions continue to adopt these products, Circle's acquisition is seen as a significant step toward establishing market structures similar to those found in traditional finance.

Leo Mizuhara, CEO of Hashnote, commented on the acquisition, stating that joining Circle would enhance their ability to scale adoption rapidly by combining USDC with USYC for yield-bearing collateral.