Circle Plans to Bring $1B Tokenized Treasury Issuer Hashnote Under Bermuda License

Circle Internet Group, Inc., the company behind the $58 billion USDC stablecoin, said on Thursday it plans to bring its recently acquired Hashnote Tokenized Money Market Fund (TMMF) under Bermuda’s regulatory oversight. The fund, which manages nearly $1 billion assets, will be incorporated into Circle’s existing Digital Assets Business Act (DABA) license, the company said in a press release. Hashnote issues USYC, the largest tokenized money market fund, according to rwa.xyz data. By integrating USYC with USDC, Circle aims to allow seamless movement between a yield-bearing asset and one of the most widely used stablecoins and boost USYC as a collateral option on exchanges, custodians and prime brokers. STORY CONTINUES BELOW Don't miss another story.Subscribe to the Crypto Long & Short Newsletter today. See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy. Circle CEO Jeremy Allaire emphasized Bermuda’s role in digital asset regulation, calling it a “natural choice” for USYC operations. The Bermuda Monetary Authority (BMA) first granted Circle a comprehensive license in 2021, and the firm has since maintained a presence in the jurisdiction. "Digital financial products like USYC and USDC are strengthening Bermuda’s digital connectivity and our leadership in international business markets,"Premier of Bermuda David Burt said in a statement.

Circle Internet Group, Inc., the company behind the $58 billion USDC stablecoin, said on Thursday it plans to bring its recently acquired Hashnote Tokenized Money Market Fund (TMMF) under Bermuda’s regulatory oversight. The fund, which manages nearly $1 billion assets, will be incorporated into Circle’s existing Digital Assets Business Act (DABA) license, the company said in a press release.

Hashnote issues USYC, the largest tokenized money market fund, according to rwa.xyz data. By integrating USYC with USDC, Circle aims to allow seamless movement between a yield-bearing asset and one of the most widely used stablecoins and boost USYC as a collateral option on exchanges, custodians and prime brokers.

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Circle CEO Jeremy Allaire emphasized Bermuda’s role in digital asset regulation, calling it a “natural choice” for USYC operations. The Bermuda Monetary Authority (BMA) first granted Circle a comprehensive license in 2021, and the firm has since maintained a presence in the jurisdiction.

“Digital financial products like USYC and USDC are strengthening Bermuda’s digital connectivity and our leadership in international business markets,”
Premier of Bermuda David Burt said in a statement.

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NYSE-Parent ICE to Explore Stablecoins, Tokenized Funds for Financial Services With Circle

Intercontinental Exchange, the parent company of the New York Stock Exchange, said it plans to explore using Circle’s stablecoin and tokenized asset to develop new products, joining a roster of U.S. traditional financial giants pushing into crypto under the Trump administration.
According to an agreement announced on Thursday, the two firms will look at how Circle’s USDC stablecoin and USYC tokenized money market fund could be integrated into derivatives exchanges, clearinghouses and other services.

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“We believe Circle’s regulated stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the U.S. dollar,” said Lynn Martin, president of the New York Stock Exchange said in a statement. “We are excited to explore the potential use cases for USDC and USYC across ICE’s markets.”

USDC is the second-largest stablecoin, trailing Tether’s USDT. It has a $60 billion market capitalization and is fully backed by U.S. government securities and cash-equivalent assets. USYC is a money market fund token issued by Hashnote, which was acquired by Circle earlier this year.
ICE is the latest example of U.S. financial behemoths delving into applying digital assets, stablecoins and tokenization as regulatory headwinds over the crypto industry subside under the Trump administration.
In the past few days, asset manager Fidelity Investments filed to launch a tokenized money market fund and is reportedly working on issuing a stablecoin, while derivatives exchange CME Group said it’s testing tokenization with Google Cloud’s private distributed ledger, aiming to launch new services next year. Tokenization is the process of placing financial instruments like bonds, funds and other securities on blockchain rails to pursue operational gains.
Martin foreshadowed the firm’s potential push into digital assets last May at a Consensus 2024 panel discussion, saying that the exchange would consider offering crypto trading if the regulatory picture in the U.S. were clearer.

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Shaurya Malwa
Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis. Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA. He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.

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