Circle’s acquisition of Hashnote and partnership with Cumberland marks an important step in integrating tokenized RWA with its USDC stablecoin.
The relationship between traditional finance and blockchain technology has intensified recently. Amid this, Circle, the issuer of the stablecoin USDC $1.00 24h volatility: 0.0% Market cap: $67.41 B Vol. 24h: $18.16 B , has announced the acquisition of popular tokenized real-world asset (RWA) issuer Hashnote, and its tokenized money market fund.
Hashnote, based in Chicago, has made a name for itself as the issuer of the $1.3 billion US Yield Coin , which has emerged as the largest tokenized U.S. Treasury product in the market. Backed by DRW Holdings, a prominent trading firm, and Cumberland, a leading institutional crypto liquidity provider, Hashnote’s integration with Circle promises to enhance the utility of blockchain-based collateral systems.
According to the January 21 announcement, Circle plans to integrate USYC with its flagship stablecoin, USDC, creating a pathway for convertibility between cash and yield-bearing assets on the blockchain. This aligns with Circle’s broader strategy to cement its position in the $200 billion stablecoin market.
Circle announced today the acquisition of Hashnote and USYC Tokenized Money Market Fund.
This strategic move, alongside a partnership with global trading firm DRW via @CumberlandSays and news that we’re bringing native USDC to the @CantonNetwork, is set to redefine the landscape… pic.twitter.com/mB1nBr7x5F
— Circle (@circle) January 21, 2025
Circle’s co-founder, Jeremy Allaire, shared the acquisition news on X and described it as a “huge” step toward bridging TradeFi structures with blockchain markets’ transparency and efficiency. Notably, the financial terms of the deal were not disclosed.
To further its market impact, Circle has also partnered with Cumberland to enhance liquidity and facilitate settlements for USDC and USYC. This partnership aims to establish USYC as a preferred collateral form on exchanges and custodial platforms.
Tokenized RWA Market
Tokenized RWAs, such as treasury bills and money market funds, are rapidly gaining traction as secure and transparent trading collateral. They offer yield generation while posted as collateral, providing a more lucrative alternative to fiat or stablecoin-backed trades. A report by Boston Consulting Group, Aptos Labs, and Invesco recently illustrated the potential for exponential growth in the RWA tokenization sector. They predicted that this market could surpass $600 billion in assets under management by 2030.
Circle’s primary competitor, Tether, has also ventured into the tokenization space, signaling the intensifying competition within the crypto industry to capitalize on this trend.
Circle is also working on deploying USDC on the Canton Network, a blockchain designed for financial institutions handling RWA transactions. This move will ensure constant liquidity between cash and collateral while enabling seamless transitions between decentralized and traditional financial markets.
Circle has seen massive growth recently. The issuer reported a 78% year-over-year increase in USDC circulation in 2024. The stablecoin currently boasts a current market capitalization of $48.8 billion, second only to Tether’s $138 billion USDT.
It is important to note that while USDC recorded a 100% growth in its market cap in the past year, USDT has only seen a 46% surge during the same period.
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