This week, Circle made 3 announcements dedicated to accelerating the adoption of USDC, starting with the purchase of Hashnote, the issuer of the world's largest tokenized money market fund. What are the other announcements?
Circle develops tokenization with the acquisition of Hashnote
On Tuesday, Jeremy Allaire, CEO of Circle, announced 3 important new developments for the USDC issuer, starting with the takeover of the company Hashnote. If that name doesn't mean anything to you, it's actually the issuer of USYC, which is the largest tokenized money market fund to date, representing $1.24 billion at the time of writing. .
đź’ˇ Real-World Assets: What is real-world asset tokenization?
While the USYD tokenizes short-term American bonds, this repurchase should lead to the integration of the fund into the collateralization process of the USDC stablecoin. In this regard, Jeremy Allaire speaks of a “huge unlocking”, at a time when institutional investors are increasingly adopting tokenized assets:
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-generating short-term treasuries become fungible and convertible at the speed of blockchains and crypto capital markets.
As this integration progresses, it will therefore be interesting to see the proportion that USYC will be required to represent in USDC reserves.
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3 additional announcements
At the same time as the announcement of this acquisition, Circle also formalized a partnership with DRW and its subsidiary Cumberland. Here again, we must look at the institutional side to understand the challenges of this partnership. Indeed, DRW is a specialized crypto trading platform for this category of investors, and the objective here is to give more weight to USDC and USYC on said platform.
In addition, these new features are part of a broader objective, namely that of launching USDC on the Canton blockchain. This blockchain, also designed for institutional players, already hosts USYC, and such a development could increase the development of the stablecoin.
Don Wilson, CEO and founder of DRW, gave his point of view on the possible synergies that these 3 announcements could bring:
I am excited to partner with Circle in its quest to bring this vision to life.” By using the Canton blockchain, which offers configurable privacy, for USDC, and acquiring Hashnote, which issues USYC, Circle brings together the key elements needed to enable 24-hour and 24-hour variation margin and collateral movements. 7 days a week, both in crypto and traditional markets.
👉 Also in the news — European Securities and Markets Authority urges exchanges to delist non-MiCA-compliant stablecoins
In the meantime, USDC displays a capitalization of $51 billion at the time of writing, which already represents an increase of 16% since January 1.
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Source: Circle
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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