Binance and Circle launch Treasury-backed USYC stablecoin as tokenized Treasuries volume doubles since Jan 2025

Binance and Circle have introduced a tokenized U.S. Treasury-backed stablecoin, USYC, designed for institutional collateral use in derivatives trading. This stablecoin, representing shares in the Hashnote International Short Duration Fund, is secured by short-term U.S. Treasury bills and operates as a yield-generating tokenized money market fund. The collaboration allows institutional clients to hold USYC in third-party custody—via Binance Banking Triparty or Ceffu—without transferring assets directly to exchanges. This approach enhances security and reduces exposure while enabling margin trading with retained ownership and passive income generation. USYC also facilitates rapid conversion to USDC, providing liquidity for capital strategies with minimal delay [1]. The integration reflects growing demand for tokenized Treasuries, with volume nearly doubling since January 2025 [2].

The product aligns with broader institutional adoption of blockchain-native assets that offer predictable returns. By tokenizing traditional financial instruments, USYC streamlines access to capital markets on-chain, accelerates settlement, and supports 24/7 trading. Institutions benefit from reduced counterparty risk and improved operational efficiency. Binance’s integration of USYC onto the BNB Chain further underscores efforts to bridge traditional finance and crypto markets [3].

Circle, which has applied for a U.S. National Trust Bank charter and plans an initial public offering, emphasized its commitment to regulatory alignment. The firm highlighted USYC’s role in enabling risk-managed yield opportunities for institutional investors [4]. Binance’s institutional services now include off-exchange collateral options, with plans to waive Banking Triparty fees until 2026 and absorb custody partner Ceffu’s charges to incentivize adoption [5].

Industry leaders noted the strategic value of tokenization in capital efficiency. Catherine Chen of Binance cited faster, cheaper settlements and on-chain transparency as key advantages, while Circle’s Kash Razzaghi underscored USYC’s role in bridging traditional and crypto markets [6]. The move also reflects a shift toward compliance-focused, yield-bearing assets, as seen in OpenEden’s cUSDO integration via Binance [7].

Tokenized real-world assets (RWAs) have surged to $24 billion in June 2025, up from $15.2 billion in December 2024, with analysts forecasting potential growth to 30% of traditional finance assets ($400 trillion) by 2034 [8]. Binance’s Banking Triparty solution, modeled after traditional finance triparty systems, has expanded its network of regulated banking partners to meet demand [9].

This collaboration highlights the maturation of on-chain finance, with institutions increasingly seeking hybrid solutions that combine security, liquidity, and yield. By offering USYC, Binance and Circle aim to modernize institutional trading frameworks while adhering to regulatory standards.

Sources:

[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] [Circle’s USYC Accepted as Collateral by Binance] (https://www.investing.com/news/cryptocurrency-news/circles-usyc-accepted-as-collateral-by-binance-for-institutional-clients-432SI-4150737)

[3] [Binance Integrates Tokenized Real-World Assets USYC] (https://www.prnewswire.com/news-releases/binance-integrates-tokenized-real-world-assets-usyc-and-cusdo-into-off-exchange-settlement-solutions-302513113.html)

[4] [Circle and Binance Push Stablecoin Innovation with USYC] (https://coincentral.com/circle-and-binance-push-stablecoin-innovation-with-usyc/)

[5] [Binance to Accept Circle's Yield-Bearing Stablecoin USYC] (https://cryptonews.com/news/binance-to-accept-circles-yield-bearing-stablecoin-usyc-as-institutional-collateral/)

[6] [Binance Integrates Tokenized Real-World Assets USYC] (https://www.prnewswire.com/news-releases/binance-integrates-tokenized-real-world-assets-usyc-and-cusdo-into-off-exchange-settlement-solutions-302513113.html)

[7] [Tokenization of Real-World Assets Excluding Stablecoins] (https://www.prnewswire.com/news-releases/binance-integrates-tokenized-real-world-assets-usyc-and-cusdo-into-off-exchange-settlement-solutions-302513113.html)

[8] [Binance’s Banking Triparty Solution] (https://www.prnewswire.com/news-releases/binance-integrates-tokenized-real-world-assets-usyc-and-cusdo-into-off-exchange-settlement-solutions-302513113.html)

[9] [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/)