Circle Announces Acquisition of Hashnote and Strategic Partnership with DRW
Circle, a leading digital currency company, announced on January 21 the acquisition of Hashnote, a tokenization firm, and the issuer of the USYC token. Additionally, the company closed a partnership with the market maker DRW Cumberland to drive USYC and USD Coin (USDC) in crypto and traditional markets.
About Hashnote
According to rwa.xyz data, Hashnote’s tokenized money fund, Hashnote Short Duration Yield Coin, is the largest in the world, with over $1.2 billion worth of tokens USYC issued on multiple blockchain networks, including Ethereum.
Circle’s Acquisition and Partnership Goals
Circle aims to fully integrate USYC with its USDC stablecoin to enhance accessibility between tokenized money market fund collateral and the stablecoin market. The goal is to make USYC the preferred yield-bearing collateral on exchanges, custodians, and prime brokers.
Quote from Jeremy Allaire, CEO and Chairman of Circle
“As cash and yield-bearing short-duration treasury bill assets become fungible and convertible at blockchain speeds, this development unlocks significant opportunities for institutional adoption and sets a new standard for financial market structures.”
Partnership with DRW Cumberland
Circle also partnered with DRW, a major institutional crypto trader, via its subsidiary Cumberland to enhance USDC and USYC liquidity.
USDC on Canton
In addition to the Hashnote announcement, Circle revealed the issuance of native USDC on the layer-1 blockchain Canton.
About Canton
Circle stated that Canton has issued over $3.6 trillion in tokenized real-world assets (RWA), as its infrastructure is already “used and supported by major traditional banks, trading firms, asset managers, and exchanges.”
USDC’s Growth and Competition
Notably, Circle has been trying to make USDC catch up with Tether USD (USDT), the largest stablecoin in the market. In December, the USDC issuer partnered with Binance to make its stablecoin an essential part of the exchange’s corporate treasury asset.
Additionally, Circle recently published a report revealing that USDC surpassed $20 trillion in all-time transaction volume and a 78% year-over-year growth in circulation supply.
However, USDC still has a lot of ground to cover. USDT dominates the stablecoin market with a nearly $141 billion supply, equivalent to 69% of the market. It amounts to over 3x the current USDC supply of $44.6 billion, based on Artemis data.
Conclusion
Circle’s acquisition of Hashnote and partnership with DRW Cumberland mark significant developments in the digital currency space. The integration of USYC with USDC aims to enhance accessibility and liquidity in the market, making USYC a preferred yield-bearing collateral. As Circle continues to grow and expand its offerings, it will be interesting to see how it competes with other stablecoins, particularly USDT.
FAQs
Q: What is Hashnote?
A: Hashnote is a tokenization firm and the issuer of the USYC token.
Q: What is the goal of Circle’s acquisition of Hashnote?
A: The goal is to fully integrate USYC with USDC to enhance accessibility between tokenized money market fund collateral and the stablecoin market.
Q: What is the partnership between Circle and DRW Cumberland?
A: The partnership aims to enhance USDC and USYC liquidity in crypto and traditional markets.
Q: What is Canton?
A: Canton is a layer-1 blockchain that has issued over $3.6 trillion in tokenized real-world assets (RWA).
Q: How does USDC compare to USDT?
A: USDT dominates the stablecoin market with a nearly $141 billion supply, while USDC has a supply of $44.6 billion.
