Binance and Circle Launch Tokenized U.S. Treasury Stablecoin for Institutional Derivatives Collateral

Binance, the cryptocurrency exchange with the highest trading volume globally, has partnered with stablecoin issuer Circle to launch a new tokenized U.S. Treasury-backed stablecoin, USYC, as collateral for institutional derivatives trading. The product, introduced on July 25, 2025, allows institutions to utilize tokenized assets for margin requirements without transferring ownership to exchanges [1]. USYC represents shares in a short-duration fund backed by U.S. Treasury bills and offers instant conversion to USDC, enabling institutions to balance yield generation with liquidity needs [2]. This collaboration marks a significant step in expanding the use cases for tokenized real-world assets (RWAs) in institutional markets [3].

The integration of USYC into Binance’s institutional trading infrastructure leverages blockchain technology to enhance capital efficiency. Institutional clients can now hold the stablecoin in third-party custody accounts via services like Binance Banking Triparty or Ceffu, mitigating risks associated with asset exposure on exchanges [4]. This approach supports margin trading while allowing users to earn interest on their collateral, combining passive income with full asset control [5]. The ability to redeem USYC for USDC in near real-time further strengthens its appeal for dynamic capital management strategies [6].

The launch aligns with a broader trend of rising institutional demand for tokenized Treasuries. Assets in this category have nearly doubled in value since January 2025, reflecting growing interest in blockchain-native instruments that offer predictable returns and faster settlement speeds [7]. USYC, issued natively on the BNB Chain, provides institutional access to a secure, regulated environment for yield-generating assets while bridging traditional finance with on-chain solutions [8].

Circle’s strategic focus on expanding its presence in the U.S. financial system is evident in its concurrent application for a National Trust Bank charter and plans for a U.S. initial public offering. The firm emphasizes compliance and programmable financial tools to facilitate seamless integration between traditional and digital markets [9]. Binance’s Banking Triparty service has also expanded its triparty banking network, waiving fees until 2026 to incentivize institutional adoption and reduce barriers to entry [10].

The collaboration underscores Binance’s commitment to modernizing institutional trading through secure, liquid, and flexible products. By enabling non-U.S. institutional clients to access tokenized assets, the partnership addresses regulatory constraints while leveraging blockchain’s advantages, including 24/7 availability and transparent settlements [11]. USYC and other tokenized RWAs are excluded from U.S. markets due to unregistered securities status, reflecting the current regulatory landscape’s emphasis on geographic compliance [12].

Source: [1] [Binance Integrates Circle's USYC for Institutional Collateral](https://www.ainvest.com/news/binance-integrates-circle-usyc-institutional-collateral-tokenized-assets-reach-24b-2507/) [2] [Binance Now Accepts Circle's Yield-Bearing USYC Token](https://www.financemagnates.com/cryptocurrency/binance-now-accepts-circles-yield-bearing-usyc-token-for-institutional-collateral/) [3] [Circle and Binance Push Stablecoin Innovation with USYC](https://coincentral.com/circle-and-binance-push-stablecoin-innovation-with-usyc/) [4] [Circle's USYC accepted as collateral by Binance for Institutional Clients](https://www.investing.com/news/cryptocurrency-news/circles-usyc-accepted-as-collateral-by-binance-for-institutional-clients-432SI-4150737) [5] [Binance Integrates Tokenized Real-World Assets USYC and cUSDO](https://www.binance.com/en/support/announcement/detail/4107094f14024afbbf5145591b66a07b) [6] [Binance Now Supports Tokenized RWAs as Off-Exchange Collateral](https://www.prnewswire.com/news-releases/binance-integrates-tokenized-real-world-assets-usyc-and-cusdo-into-off-exchange-settlement-solutions-302513113.html) [7] [Circle's USYC joins Binance as Tokenized Treasuries Boom](https://invezz.com/news/2025/07/24/circles-usyc-joins-binance-as-tokenized-treasuries-boom/) [8] [Binance to Accept Circle's Yield-Bearing Stablecoin USYC](https://cryptonews.com/news/binance-to-accept-circles-yield-bearing-stablecoin-usyc-as-institutional-collateral/) [9] [Binance Integrates Tokenized Real-World Assets USYC and cUSDO](https://www.binance.com/en/support/announcement/detail/4107094f14024afbbf5145591b66a07b) [10] [Circle and Binance Push Stablecoin Innovation with USYC](https://coincentral.com/circle-and-binance-push-stablecoin-innovation-with-usyc/) [11] [Binance Integrates Tokenized Real-World Assets USYC and cUSDO](https://www.binance.com/en/support/announcement/detail/4107094f14024afbbf5145591b66a07b) [12] [Binance Integrates Tokenized Real-World Assets USYC and cUSDO](https://www.binance.com/en/support/announcement/detail/4107094f14024afbbf5145591b66a07b)