Stablecoin issuer Circle on Wednesday expanded the provision of its tokenized cash market fund USYC to the Solana blockchain. The corporate mentioned the token represents short-term US authorities TMMF inventory.
USYC could be redeemed in real-time for USDC, Circle’s dollar-backed stablecoin. The token is at present solely out there to non-US institutional traders who’ve handed know-your-customer (KYC) checks.
Circle goals to develop USYC past different blockchains
USYC is now out there on @solana.
USYC is a tokenized cash market fund that earns yield via token worth appreciation and redeems on-chain to and from USDC.
Day by day pricing. SPL native integration. Oracle-driven updates.
Collateral for a lot of venues is static. Yield can’t be captured… pic.twitter.com/ZKGXaRVRQZ
— Circle (@circle) October 1, 2025
USYC is permissive by design in comparison with different digital belongings generally utilized in decentralized finance (DeFi). This initiative goals to develop USYC past Ethereum, the BNB chain, and the deliberate addition of close to and cantonal networks.
circle acknowledged The corporate mentioned it chosen Solana for its design options designed to ship low-latency transaction confirmations and excessive throughput. The corporate additionally famous that tokens on Solana are configured via the Solana Program Library (SPL), which permits for deterministic funds and fine-grained management on the account stage.
Circle has confirmed that Solana members will be capable to incorporate USYC as a tokenized cash market fund (TMMF) for lending. The corporate mentioned USYC within the lending market will enable the token to behave as yield-bearing collateral, permitting suppliers to earn underlying yield for the fund whereas offering liquidity. USYC additionally permits debtors to comprehend decrease web curiosity prices as a result of the pledged collateral continues to generate yield.
Solana members can: use USYC is used as margin collateral for perpetual DEX derivatives and continues to accrue yield throughout buying and selling actions. USYC will also be deployed as a base asset inside an automatic yield vault, which layers programmatic methods on prime of the fund's every day worth updates, Circle mentioned.
Circle additionally warned that builders might have to earn certification earlier than becoming a member of USYC. The corporate mentioned it has confirmed that members can implement token and custody flows utilizing the SPL Token-2022 program, and that solely eligible wallets could make deposits and withdrawals.
Members may also block ineligible transfers in program logic as soon as this system manages storage. Solana members can iterate USYC's per-share worth feed and use it to drive curiosity accrual, threat parameters, and liquidation logic.
Circle claimed that for the reason that USYC operate is programmable and accrual happens via the token worth, there may be income accrual collateral and eliminates the necessity for separate reward claims. The corporate defined that close to real-time redemption and provide to USDC will help the token's operational liquidity and simplify collateral rebalancing.
Circle acquires USYC writer Hashnote
Previously Cryppolitan reported The Circle acquired USYC writer Hashnote in January. The corporate mentioned the mixing of USYC and USDC will enable tokenized funds to emerge as the popular type of high-yield collateral within the cryptocurrency sector.
“The mixing of USYC and Hashnote into the Circle platform marks a key second within the evolution of the stablecoin market, as money and yield-bearing Treasury invoice belongings develop into fungible and exchangeable on the pace of blockchain and crypto capital markets.”
～ Jeremy AllaireCircle CEO and Chairman
Allaire additionally mentioned that Circle invented money and is now main the tokenized cash market sector, which he believes will probably be important to the way forward for the worldwide monetary system. Hashnote CEO Leo Mizuhara defined that the trouble to affix Circle will strengthen the corporate's capacity to shortly scale adoption by combining USDC and USYC.
In accordance with RWA.xyz knowledge, USYC ranks fifth amongst tokenized monetary merchandise with a market capitalization of $634 million. The info additionally reveals that the broader tokenized authorities bond market has grown to $8 billion, pushed by institutional demand for high-yield digital belongings backed by real-world securities.
JPMorgan analysts additionally attribute this sturdy development to high-yielding stablecoins. Accommodates Tokenized cash market funds (MMFs) and Treasury invoice merchandise. JPMorgan managing director Nikolaos Panigirtzoglou believes tokenized authorities debt merchandise may develop to account for half of the stablecoin market. He additionally believes that in conditions the place stablecoins can not immediately present yield, tokenized MMFs are prone to take the lead.
