Stablecoin issuer Circle on Wednesday expanded the provision of its tokenized cash market fund, USYC, to the Solana blockchain. The agency mentioned the token represents shares in a short-duration U.S. authorities TMMF.
USYC could be redeemed for USDC, Circle’s dollar-backed stablecoin, in real-time. The token can be at present accessible solely to non-U.S. institutional traders who move know-your-customer (KYC) checks.
Circle goals to broaden USYC past different blockchains
USYC is now accessible on @solana!
USYC is a tokenized cash market fund that accrues yield by way of token worth will increase and redeems to/from USDC onchain.
Every day pricing. SPL-native integration. Oracle-driven updates.
Collateral on many venues is static. Yield shouldn’t be captured.… pic.twitter.com/ZKGXaRVRQZ
— Circle (@circle) October 1, 2025
USYC is permissioned by design, in comparison with different digital property generally utilized in decentralized finance (DeFi). The initiative goals to broaden USYC past Ethereum, BNB Chain, and the deliberate addition of Close to and Canton networks.
Circle acknowledged that it selected Solana for its design options, that are engineered for low-latency transaction confirmations and excessive throughput. The agency additionally famous that tokens on Solana are composed by way of the Solana Program Library (SPL), which allows deterministic settlement and granular account-level management.
Circle confirmed that individuals on Solana can incorporate USYC as a tokenized cash market fund (TMMF) for borrowing and lending. The agency acknowledged that USYC within the lending market allows the token to function yield-bearing collateral, permitting suppliers to earn the fund’s underlying yield whereas offering liquidity. USYC can even allow debtors to expertise decrease web curiosity prices as a result of posted collateral will proceed to accrue yield.
Contributors on Solana can use USYC as margin collateral on derivatives on perpetual DEXs to proceed to accrue yield throughout buying and selling actions. They’ll additionally deploy USYC as a base asset inside automated yield vaults, which Circle mentioned will layer programmatic methods on prime of the fund’s every day worth updates.
Circle additionally warned that builders could have to be certified earlier than being onboarded to USYC. The agency acknowledged that individuals can implement token and custody flows utilizing the SPL Token-2022 program, which confirms that solely eligible wallets are allowed to deposit and withdraw.
Contributors may also block non-eligible transfers in this system logic as soon as their program manages custody. Contributors on Solana will then iterate the USYC price-per-share feed and may use it to drive curiosity accrual, danger parameters, and liquidation logic.
Circle maintained that USYC features are programmable and have yield-accruing collateral since accrual happens by way of the token worth, which removes the necessity for separate reward claims. The agency defined that near-real-time redemptions and provide into USDC assist the token’s operational liquidity and simplify collateral rebalancing.
Circle acquires USYC’s issuer Hashnote
Cryptopolitan beforehand reported that Circle acquired Hashnote, the issuer of USYC, in January. The agency mentioned the combination of USYC with USDC will allow the tokenized fund to emerge as a most well-liked type of yield-bearing collateral within the crypto sector.
“The mixing of USYC and Hashnote into Circle’s platform marks a significant second within the evolution of the stablecoin market, as money and yield-bearing short-duration treasury invoice property change into fungible and convertible on the pace of blockchains and crypto capital markets.”
~ Jeremy Allaire, CEO and Chairman of Circle
Allaire additionally acknowledged that Circle invented money and is now main the tokenized cash markets sector, which he believes will change into important to the way forward for the worldwide monetary system. CEO of Hashnote, Leo Mizuhara, defined that the initiative to affix Circle enhances the corporate’s skill to quickly scale adoption by pairing USDC with USYC.
RWA.xyz knowledge revealed that USYC ranks fifth amongst tokenized treasury merchandise, with a market capitalization of $634 million. The info additionally exhibits the broader tokenized treasury market has grown to $8 billion, pushed by institutional demand for yield-bearing digital property backed by real-world securities.
JPMorgan analysts additionally attributed the robust progress to yield-bearing stablecoins, a class that contains tokenized cash market funds (MMFs) and Treasury invoice merchandise. Nikolaos Panigirtzoglou, managing director at JPMorgan, believes that tokenized treasury merchandise may develop to signify as a lot as half of the stablecoin market. He additionally thinks that tokenized MMFs will doubtless take the lead in situations the place stablecoins stay barred from providing yield straight.
