Circle Acquires Hashnote and Partners with DRW to Boost USDC Liquidity
In a move to enhance USDC liquidity and presence in the traditional market, Circle has announced the acquisition of Hashnote, a tokenization firm and the issuer of USYC, along with a partnership with DRW Cumberland, a market maker.
Circle’s acquisition of Hashnote signifies a strategic step towards integrating USYC with its USDC stablecoin. With over $1.2 billion worth of USYC tokens issued on multiple blockchain networks, including Ethereum, Hashnote’s tokenized money fund, Hashnote Short Duration Yield Coin, is now the largest in the world. This integration aims to improve accessibility between tokenized money market fund collateral and the stablecoin market, making USYC the preferred yield-bearing collateral on various platforms like exchanges, custodians, and prime brokers.
Partnership with DRW Cumberland
Furthermore, Circle has partnered with DRW Cumberland, a prominent institutional crypto trader, to enhance liquidity for both USDC and USYC. This collaboration seeks to drive the adoption and utilization of these digital assets in both crypto and traditional markets. Jeremy Allaire, CEO and Chairman of Circle, emphasized the significance of this partnership in unlocking opportunities for institutional adoption and revolutionizing financial market structures.
USDC on Canton Blockchain
In addition to the Hashnote acquisition, Circle has revealed the issuance of native USDC on the layer-1 blockchain Canton. With over $3.6 trillion in tokenized real-world assets already issued on Canton, this infrastructure is widely supported by major traditional banks, trading firms, asset managers, and exchanges. Circle’s efforts to boost USDC’s market presence and compete with Tether USD (USDT), the leading stablecoin, have been evident in recent partnerships and collaborations.
Despite USDC’s impressive growth in transaction volume and circulation supply, there is still ground to cover in catching up to USDT. As USDT dominates the stablecoin market with a supply of nearly $141 billion, Circle continues to push for USDC’s adoption and utilization across various sectors.
This strategic move by Circle signifies a significant step towards enhancing USDC liquidity and market presence, solidifying its position in the digital asset landscape. With partnerships with key industry players like DRW and initiatives to integrate USYC with USDC, Circle is poised to drive further adoption and utilization of these digital assets in the global financial ecosystem.
