Circle Acquires Hashnote for $99.8 Million to Expand RWA Capabilities

Circle, a leading digital currency company, has acquired Hashnote, a real-world asset (RWA) issuer, for approximately $99.8 million. The acquisition was completed in January 2025 and involved a combination of cash and shares, with Circle paying $9.9 million in cash and issuing approximately 2.9 million fully-vested common shares. This strategic acquisition is aimed at expanding Circle's capabilities in the RWA sector, which involves the tokenization of real-world assets such as real estate, commodities, and other tangible assets.

Hashnote, which was launched with a $5 million investment from Cumberland Labs, is the issuer of the U.S. Yield Coin (USYC). The company issued $1.3 billion worth of USYC tokens, which saw rapid growth last year, becoming the largest tokenized U.S. Treasury bond product in the market. However, since the acquisition, Hashnote's market share in tokenized U.S. Treasury bond products has declined.

This acquisition aligns with Circle's broader strategy to diversify its offerings and strengthen its position in the digital asset market. By integrating Hashnote's technology and expertise, Circle aims to enhance its ability to issue and manage RWAs, thereby attracting a wider range of investors and use cases. This move is particularly significant as it comes ahead of Circle's planned initial public offering (IPO), which is expected to raise approximately $600 million. The timing of the acquisition suggests that Circle is positioning itself to leverage the additional capital and market exposure that an IPO would provide.

The deal underscores the growing interest in RWAs within the digital asset ecosystem. RWAs represent a bridge between traditional finance and the world of cryptocurrencies, offering investors the opportunity to gain exposure to real-world assets while benefiting from the efficiency and transparency of blockchain technology. Circle's acquisition of Hashnote is a clear indication of its commitment to this emerging sector and its belief in the potential of RWAs to drive future growth.

The financial terms of the acquisition, which include a mix of cash and shares, reflect Circle's confidence in its future prospects and its willingness to invest in strategic assets that can drive long-term value. The use of shares as part of the consideration also aligns with Circle's goal of creating a more inclusive and decentralized financial system, where stakeholders have a direct stake in the company's success. This approach not only helps to conserve cash but also fosters a sense of shared ownership and alignment of interests among key partners and investors.

In summary, Circle's acquisition of Hashnote for approximately $99.8 million is a strategic move that positions the company to capitalize on the growing demand for RWAs. By leveraging Hashnote's technology and expertise, Circle aims to enhance its capabilities in the RWA sector and attract a broader range of investors. This acquisition is part of Circle's broader strategy to diversify its offerings and strengthen its position in the digital asset market, ahead of its planned IPO. The deal highlights Circle's commitment to innovation and its belief in the potential of RWAs to drive future growth in the digital asset ecosystem.