Circle to Integrate Hashnote $900M Fund Under Bermuda Regulatory Framework for USDC and USDY Enhancement
Circle, the company behind the stablecoin USDC, plans to integrate its Hashnote Tokenized Money Market Fund under Bermuda’s Digital Assets Business Act (DABA) license. Acquired by Circle in January 2025, Hashnote manages USDY, a significant tokenized treasury and money fund now valued at $900 million—a sharp decline from $1.9 billion earlier this year. Circle aims to fully integrate USDC with USDY to enhance liquidity and yield opportunities, intending to make USDY a preferred collateral on crypto exchanges. Bermuda, an early adopter of digital asset regulations, offers a supportive environment that Circle hopes to leverage for real-world asset tokenization, a market predicted to surge to $30 trillion, thereby facilitating new trading prospects and benefits such as liquidity and transparency.
Bullish
The integration of Circle’s tokenized assets under Bermuda’s regulatory framework is poised to enhance the utility and appeal of USDC and USDY. By capitalizing on Bermuda’s advanced regulatory environment, Circle intends to promote real-world asset tokenization. This strategic move could lead to increased liquidity and attract more institutional investors, providing new collateral tools for exchanges. Such developments are likely to be perceived positively in the crypto market, encouraging trading activities and increasing investor confidence in the integration of digital assets with traditional financial systems.