Binance has integrated Circle’s USYC token into its platform, allowing institutional clients to use this tokenized money market fund as off-exchange collateral in derivatives trading.
This collaboration aims to meet growing institutional demand for tokenized Real-World Assets and improve capital efficiency by enabling near-instant conversion of USYC into USDC stablecoin.
Tokenized Money Market Fund and Collateral Use
USYC is a tokenized money market fund backed primarily by short-term U.S. Treasury bills. It offers continuous yield and high liquidity, addressing a key challenge for institutions: balancing yield generation with operational flexibility.
Through blockchain tokenization, USYC allows real-time transfers and near-instant redemption into USDC, facilitating seamless movement between tokenized cash and Treasury assets.
“USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency,” commented Kash Razzaghi, the Chief Business Officer at Circle. “It's near-instant redemption into USDC makes it an obvious fit for modern collateral use in digital markets.”
The integration allows Binance’s institutional customers to hold USYC off-exchange, with custody support provided through Binance Banking Triparty or Ceffu.
Issued natively on the BNB Chain, USYC users gain easier access to on-chain opportunities tied to traditional assets. This move aligns with recent market trends, as demand for tokenized Treasury interests has nearly doubled since the start of 2025.
The Broader Context and Future Outlook
Tokenized money market funds like USYC are gaining traction as alternatives to stablecoins in institutional finance. They offer yield while maintaining compatibility with traditional regulatory frameworks.
Blockchain's automation improves settlement speed and risk management compared to legacy systems. Circle’s collaboration with Binance marks a milestone in adopting tokenized Real-World Assets, signaling broader changes ahead in digital capital markets.
Circle Inc., a Boston-based fintech company, made headlines last month with its high-profile stock market debut, becoming the first stablecoin issuer to go public. The IPO marked a notable moment for the digital asset sector, providing a test case for how crypto-linked payment and traditional equity markets receive infrastructure companies.
Related: Circle Moves to Become a US National Trust Bank after Bumper IPO
The firm’s flagship product, USD Coin (USDC), is currently the world’s second-largest stablecoin, with $61 billion in circulation, trailing only Tether.
In addition, Circle recently applied to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank in the U.S. The move aims to place its stablecoin reserves under federal oversight, reflecting the company’s positioning as regulatory frameworks for stablecoins continue to evolve in the U.S.
This article was written by Jared Kirui at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments