Stablecoin Issuer Circle Acquires Hashnote Issuer of US Yield Coin, Partners with DRW

Circle, a top stablecoin issuer best known for its dollar-based digital currency USDC, has acquired Hashnote. The purchase was revealed at  Davos, Switzerland where Circle CEO and founder Jeremy Allaire was speaking. Hashnote is the issuer of the Tokenized Money Market Fund (TMMF) – US Yield Coin (USYC).

The company also shared its intent to provide USDC support on the Canton Network, enabling private transactions and the use of USDC and USYC in TradFi markets. The Canton Network is a blockchain targeting institutional finance. The tech is said to have facilitated over $4.6 billion in tokenized bond issuances since 2022.

USYC is described as the largest tokenized treasury and money market fund in the world, with $1.5 billion deployed into USYC as of January 15, 2025.

DRW is a trading firm based in Chicago. DRW focuses on various assets, including Fixed Income, ETFs, Equities, FX, Commodities, and Energy. DRW is home to three subsidiaries, including Cumberland, which focuses on digital assets; DRWVC, which invests in Fintech and enterprise tech firms; and Convexity, a real estate investment entity. The Canton Network was incubated at Cumberland.

Circle said it intends to fully integrate USYC with USDC, offering seamless access between TMMF collateral and USDC. This aims to enable USYC to emerge as a top form of yield-bearing collateral on crypto exchanges and with custodians and prime brokers.

Allaire said the acquisition and integration is a major moment for crypto capital makets.

“This is a huge unlock for a market that is increasingly being driven by institutional adoption, and where participants increasingly expect market structures that are common in TradFi. We helped invent tokenized cash, and are now leading the way in tokenized money markets, both of which we believe will become essential to the future of the global financial system. Circle’s acquisition of Hashnote and our strategic partnership with DRW-affiliate Cumberland are crucial to driving and delivering these products at scale.”

Leo Mizuhara, CEO and Founder of Hashnote, said that joining Circle increases their ability to scale adoption.

As DRW operates Cumberland, a large crypto trading platform for institutions, the use of these products is predicted to grow rapidly.

Don Wilson, CEO and Founder of DRW, said he has advocated for the use of blockchain tech by traditional finance for years.

“I am excited to partner with Circle in its quest to make this a reality. By utilizing the Canton blockchain, which offers configurable privacy, for USDC, and acquiring Hashnote, which issues USYC, Circle unites the key elements necessary to enable 24/7 collateral and variation margin movement across both crypto and traditional markets.”

 


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