Circle integrates $1B Hashnote fund under Bermuda license

Circle Internet Group plans to bring Hashnote’s $1 billion tokenised money market fund (USYC) under its Digital Assets Business Act (DABA) license, issued by the Bermuda Monetary Authority (BMA).

This move aims to align USYC with Circle's regulatory framework in Bermuda, enhancing its integration with Circle’s USDC (CRYPTO:USDC) stablecoin.

The USYC fund, which held nearly $1 billion in assets as of March 13, 2025, is currently the largest tokenised treasury product globally.

Circle intends to enable direct access between USYC’s yield-bearing collateral and USDC, potentially expanding its utility in crypto trading and institutional finance.

Circle CEO Jeremy Allaire described Bermuda as a "natural choice" for overseeing the fund, citing the BMA’s emphasis on transparency and regulatory clarity in digital asset markets.

Bermuda Premier David Burt welcomed the development, highlighting it as evidence of the jurisdiction's appeal to fintech companies.

Bermuda’s DABA framework, established in 2018, provides a comprehensive regulatory structure for digital asset businesses, including issuance, trading, and custodial services.

The framework has attracted firms seeking compliance and innovation in the crypto space.

USYC is currently unavailable to U.S. persons due to Regulation S of the Securities Act of 1933.

While Circle has not provided a specific timeline for completing the licensing transition, it emphasised ongoing collaboration with the BMA to finalise operational details.

The announcement coincides with Circle’s participation in Bermuda’s inaugural Digital Finance Forum this spring, where discussions on blockchain-based financial infrastructure are expected.

Dante Disparte, Circle’s Chief Strategy Officer, noted that leveraging Bermuda's regulatory environment would help scale USYC's adoption globally.

Circle, the second-largest stablecoin issuer after Tether (CRYPTO:USDT), has increasingly focused on regulated crypto products.

Its USDC stablecoin—backed 1:1 by the U.S. dollar—currently circulates over $58 billion.

This integration underscores Circle’s strategy to expand its regulated offerings while navigating evolving global cryptocurrency regulations.

By positioning USYC under Bermuda's robust framework, Circle aims to enhance its role in bridging traditional finance and blockchain-based solutions.