Theta Network (theta) 
Circle Announces Updates to Improve Access to Tokenized Yield-Bearing Products
Stablecoin issuer Circle has unveiled three significant updates aimed at enhancing access to tokenized yield-bearing products and institutional digital asset liquidity. The company behind the second-largest stablecoin, USDC, has acquired Hashnote, the firm responsible for the $1.3 billion on-chain money market USYC.
Integration of Hashnote’s U.S. Yield Coin with USDC
The acquisition will integrate Hashnote’s U.S. Yield Coin with USDC, addressing the growing demand for yield-bearing collateral in the crypto market structure. Circle CEO Jeremy Allaire emphasized the enormous opportunity this presents, stating that it will bring yield-bearing collateral into crypto market structure.
Hashnote, launched in February 2023, was backed by a $5 million investment from Cumberland Labs, a crypto venture startup supported by institutional trading firm DRW.
As more institutions get involved in the digital asset market, we are taking common practices in traditional finance and importing those on-chain, but with the incredible super powers of global, real-time settlement, programmability, and composability.
Partnership with Cumberland for Enhanced Liquidity
Circle has also partnered with crypto market maker Cumberland, an offshoot of DRW, to enhance liquidity and operations for USDC and USYC. This strategic partnership aims to attract more institutional participants in the digital asset space.
Issuance of USDC on Canton
Additionally, Circle plans to issue its USDC stablecoin on Canton, a decentralized network designed to settle private transactions. The presence of USYC on Canton will enable “24/7/365 convertibility between collateral and cash for use in TradFi markets on-chain,” according to Allaire.
The Growing Tokenization Market
The $3.5 billion tokenization market continues to gain attention from crypto users, institutions, and regulators. Tokenization leverages blockchain technology to mint real-world assets as digital tokens, enabling traders to access these products on-chain.
The global tokenization market is projected to reach $13 billion by 2032. Federal U.S. watchdogs, such as the Commodity Futures Trading Commission, are reportedly considering new rules for the industry.
Key Takeaways:
• Circle acquires Hashnote, issuer of the world’s largest Tokenized Money Market Fund (USYC)
• Strategic partnership with global trading firm DRW to drive USDC and USYC in crypto and TradFi
• USDC to be issued on Canton, enabling 24/7/365 convertibility between collateral and cash
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