Circle Expands Stablecoin Market Leadership with Hashnote Acquisition

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Circle Internet Group, Inc., a prominent global financial technology firm specializing in stablecoins, has announced its acquisition of Hashnote, the issuer of USYC, a leading tokenized treasury and money market fund valued at $1.52 billion as of January 15, 2025.

The acquisition marks a significant step for Circle in integrating USYC with its flagship stablecoin, USDC. This move will streamline access between Tokenized Money Market Fund (TMMF) collateral and USDC. In addition, it will enhance liquidity and usability across crypto exchanges, custodians, and prime brokers.

Stablecoin Company CEO Highlights the Significance of the Acquisition

Jeremy Allaire, CEO and Chairman of Circle highlighted the strategic importance of the acquisition, stating, “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.”

On the other hand, Leo Mizuhara, CEO and Founder of Hashnote, expressed optimism about the partnership. He said, “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.”

Circle Expands Partnership Deal to Involve DRW

The acquisition earned reinforcement, following a separate collaboration with DRW’s subsidiary Cumberland, a major player in institutional crypto trading. Cumberland’s involvement will expand liquidity and settlement capabilities for USDC and USYC, driving innovation in collateral management across traditional and crypto markets.

In addition to acquiring Hashnote, Circle announced plans to deploy native USDC on Canton, a leading public blockchain renowned for its secure financial applications. This initiative aims to enable seamless convertibility between collateral and cash, supporting 24/7 trading operations in traditional finance (TradFi).

Meanwhile, USYC, already endorsed by major digital asset firms and derivatives exchanges, is poised to further integrate into the broader financial ecosystem, supported by Circle’s robust infrastructure and strategic partnerships.

Overall, Circle’s acquisition of Hashnote underscores its commitment to advancing tokenized financial products, enhancing market efficiency, and bridging the gap between traditional finance and blockchain technology.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.