Circle, a stablecoin issuing company, has purchased Hashnote – the company behind the world’s largest tokenized fund.
Circle has created USDC, which is a stablecoin whose market cap is now $48 billion. Circle CEO Jeremy Allaire called it tokenized money in a space on Tuesday X.
Executive noted that interest is growing in adding more real-world assets to the blockchain. Tokenized Treasurys/money-market funds are the most common category of tokenized assets outside stablecoins.
Franklin Templeton launched its OnChain US Government Money Fund (FOBXX) — a yield-bearing alternative to stablecoins — in 2021. BlackRock, the asset management company, launched BUIDL last year, a product that competes with stablecoins.
Hashnote is the version that uses USYC US Yield Coin. This is the representation onchain of SDYF, which holds T-bills with short maturities. USYC has assets worth $1.5billion, which is about half of all tokenized Treasurys.
“We see this as a key building block now,” Allaire said. “The problem that we want to solve is, how can market participants…use yield-bearing collateral, but instantly enable it to be used as cash and to create a sort of 24/7, 365 continuous model for how you can move between cash and yield?”
Circle CEO: “That’s what this unlocks.”
The Hashnote deal is essentially part of the broader goal of taking the benefits of crypto — constant, globally available market infrastructure — and bringing that over to the TradFi world, lowering costs and boosting efficiency.
Circle will partner with trading firm DRW, via Cumberland. This partnership will increase USDC liquidity and USYC payment capabilities. Stablecoins issuer Circle also announced that it intends to use USDC for the Canton public blockchain.
Whether trillions of dollars worth of assets come onto the blockchain — and how quickly — will depend on institutions seeing enough value in emerging use cases, Ripple’s James Wallis told me in October.
The Circle Deal may help accelerate this trend.
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