Circle, a stablecoin issuer, has expanded the availability of its tokenized money market fund, USYC, to the Solana blockchain. This token represents shares in a short-duration U.S. government TMMF.
USYC can be redeemed for USDC, Circle’s dollar-backed stablecoin, in real-time. Currently, the token is only available to non-U.S. institutional investors who pass KYC checks.
Circle’s Plans for USYC
USYC is now available on @solana!
USYC is a tokenized money market fund that accrues yield through token price increases and can be redeemed to/from USDC on-chain.
Daily pricing. SPL-native integration. Oracle-driven updates.
Collateral on many venues is static. Yield is not captured.… pic.twitter.com/ZKGXaRVRQZ
— Circle (@circle) October 1, 2025
USYC is designed as a permissioned asset compared to other digital assets used in DeFi. Circle aims to expand USYC beyond Ethereum, BNB Chain, and the addition of Near and Canton networks.
Circle selected Solana for its design features, which offer low-latency transaction confirmations and high throughput. Tokens on Solana are created via the Solana Program Library (SPL), enabling deterministic settlement and granular account-level control.
Participants on Solana can utilize USYC as a tokenized money market fund for borrowing and lending. USYC in the lending market serves as yield-bearing collateral, allowing suppliers to earn the fund’s underlying yield while providing liquidity.
Circle emphasized that USYC functions are programmable and have yield-accruing collateral. The token’s operational liquidity is supported by near-real-time redemptions and supply into USDC, simplifying collateral rebalancing.
Circle’s Acquisition of USYC’s Issuer, Hashnote
Cryptopolitan previously reported that Circle acquired Hashnote, the issuer of USYC, in January. The integration of USYC with USDC aims to establish the tokenized fund as a preferred form of yield-bearing collateral in the crypto sector.
“The integration of USYC and Hashnote into Circle’s platform marks a major moment in the evolution of the stablecoin market, as cash and yield-bearing short-duration treasury bill assets become fungible and convertible at the speed of blockchains and crypto capital markets.”
~ Jeremy Allaire, CEO and Chairman of Circle
Circle’s CEO, Jeremy Allaire, stated that the company is leading the tokenized money markets sector, which he believes will play a crucial role in the future of the global financial system. CEO of Hashnote, Leo Mizuhara, highlighted that joining Circle enhances their ability to scale adoption by pairing USDC with USYC.
RWA.xyz data revealed that USYC ranks fifth among tokenized treasury products with a market capitalization of $634 million. The broader tokenized treasury market has grown to $8 billion, driven by institutional demand for yield-bearing digital assets backed by real-world securities.
JPMorgan analysts noted the strong growth of yield-bearing stablecoins, including tokenized MMFs and Treasury bill products. They believe tokenized treasury products could represent up to half of the stablecoin market, with MMFs likely leading in scenarios where stablecoins cannot offer yield directly.