Circle Internet Financial, the second-largest issuer of USDC stablecoin in the world, has just announced the acquisition of Hashnote, the issuer of the digital asset fund US Yield Coin (#USYC ). This is an important milestone, marking the merger between two "giants" in the stablecoin and on-chain money fund sector.

USYC – Leading digital money fund

Hashnote stands out with the USYC fund, one of the most popular digital assets (RWA) today with a total value locked (TVL) of approximately $1.25 billion, according to RWA.xyz. This fund focuses on income-generating assets such as U.S. government bonds, meeting the growing demand from investors for digital financial products.

Integrating USDC and USYC – Circle's strategic move

Circle plans to fully integrate USYC with $USDC , allowing investors to easily switch between the digital money market fund and stablecoins. This opens up significant opportunities for USYC to become the preferred collateral asset on cryptocurrency exchanges, custody platforms, and major brokers.

Cooperating with DRW – Strengthening liquidity

Circle also announced a partnership with DRW, one of the largest institutional crypto traders. This collaboration will enhance the liquidity and payment capabilities of USDC and USYC, while also improving the management efficiency of collateral assets.

A market full of potential

Digital assets, especially real asset funds like USYC, are becoming a massive market worth up to $30 trillion globally. The demand for digital money funds, including highly liquid assets like U.S. Treasury bills (T-bills), is booming.

The main competitors of USYC include:

  • BlackRock USD Institutional Digital Liquidity Fund (BUIDL) with a TVL of $630 million.

  • Franklin OnChain US Government Money Fund (FOBXX) with a TVL of $525 million.

Benefits and risks of digital assets

The U.S. Treasury Department notes that the tokenization of government bonds could bring operational improvements and innovation to the financial market, but also poses risks to financial stability.

Conclusion

With the acquisition of #hashnote and the integration of USYC, Circle is not only strengthening its position in the stablecoin space but also expanding into the digital asset market. This is a strategic move, promising to boost the robust development of decentralized finance and digital assets in the near future. #anhbacong