Catenaa, Saturday, August 02, 2025-Binance has partnered with Circle to integrate USYC, a yield-generating tokenized money market fund, as an off-exchange collateral option for institutional clients, marking a significant step in the evolution of tokenized finance.
The integration allows institutional users of Binance to hold USYC and deploy it as collateral for derivatives trading, the company announced Thursday.
The asset, backed by U.S. government securities and structured via reverse repurchase agreements, is already represented onchain with nearly $686 million in holdings, according to RWA.xyz.
USYC was introduced through Circle’s acquisition of Hashnote, a tokenization firm incubated by Cumberland Labs.
The fund offers “near-instant fungibility” with Circle’s USDC stablecoin, bridging tokenized cash and Treasuries while generating yield. Binance will also issue USYC natively on its BNB Chain, providing greater access to onchain finance applications.
The move deepens the ongoing strategic partnership between Binance and Circle, announced late last year.
It comes amid efforts by Binance to expand institutional products and follows Circle’s public listing in June. Circle, previously closely aligned with Coinbase, now appears to be broadening its alliances in the digital asset space.
