Circle Integrates USDY with USDC Under Bermuda's Regulatory Oversight

Circle, the issuer of the stablecoin USDC, has announced its intention to bring its Hashnote Tokenized Money Market Fund (TMMF) under the regulatory oversight of Bermuda through its existing Digital Assets Business Act (DABA) license. This move comes as Circle seeks to fully integrate USDY, the largest tokenized treasury and money market fund with a total value locked (TVL) of $900 million, with its stablecoin USDC.

The integration aims to allow for seamless access between the TMMF and the stablecoin, positioning USDY as the preferred form of yield-bearing collateral on crypto exchanges. This strategic move is expected to benefit custodians and brokers by providing a more efficient and transparent means of managing collateral.

Bermuda's regulatory framework, established under the Digital Assets Business Act, is one of the first legal and regulatory frameworks for governing digital assets. Circle was the first firm in the crypto industry to receive a license under the Bermuda Monetary Authority in September 2021. The Act currently permits three types of licenses for companies conducting business under its provisions, ensuring a robust regulatory environment for digital asset operations.

This development underscores Circle's commitment to expanding its offerings in the digital asset space while adhering to stringent regulatory standards. By bringing USDY under the DABA license, Circle aims to enhance the stability and reliability of its tokenized money market fund, further solidifying its position in the rapidly evolving digital asset landscape.