#Circle Acquires Tokenization Company#

Circle has acquired Hashnote, an issuer of tokenized real-world assets (RWAs) and the issuer of USYC, a $1.3 billion tokenized money market fund. The acquisition marks another example of how the crypto trends of stablecoins and tokenization are increasingly intertwined. Circle intends to integrate USYC with its flagship stablecoin, USDC, enabling the interoperability of cash and yield-bearing collateral on the blockchain. The acquisition also includes an agreement with Cumberland, a cryptocurrency trading company and market maker affiliated with DRW, to provide liquidity for USDC and USYC and facilitate settlements. Additionally, Circle has outlined plans to deploy USDC on Canton Network, a blockchain specifically built for traditional financial institutions to transact in real-world assets. These initiatives aim to broaden USYC’s reach as a form of collateral on exchanges and custody platforms and create continuous liquidity between cash and collateral, enabling seamless transitions between decentralized and traditional markets. The acquisition highlights the synergy between two of the hottest trends in the crypto space: stablecoins and tokenization. Stablecoins, a $200 billion cryptocurrency asset class whose price is pegged primarily to the US dollar, are critical infrastructure in the tokenization effort. They act as bridges between fiat currency and digital assets and are widely used for settling transactions on blockchain rails. Tokenized RWAs like treasury bills and money market funds are rapidly gaining favor among sophisticated investors and asset managers as collateral for trading. Unlike traditional markets, blockchain-based assets promise transparency, accessibility, and 24/7 settlements. Treasury-backed tokens also allow investors to earn yields while holding them as trading collateral or margin, offering higher returns compared to trading with fiat currency or stablecoin collateral.