Circle Integrates USYC with USDC Under Bermuda’s Regulatory Oversight

Circle Internet Group, Inc., the issuer of the USDC stablecoin, has announced plans to bring its recently acquired Hashnote Tokenized Money Market Fund (TMMF) under Bermuda’s regulatory oversight. This move will incorporate the fund, which manages nearly $1 billion in assets, into Circle’s existing Digital Assets Business Act (DABA) license. The integration of USYC, the largest tokenized money market fund issued by Hashnote, with USDC aims to facilitate seamless movement between a yield-bearing asset and one of the most widely used stablecoins. This integration is expected to enhance USYC's appeal as a collateral option on exchanges, custodians, and prime brokers.

Circle CEO Jeremy Allaire highlighted Bermuda’s significance in digital asset regulation, describing it as a “natural choice” for USYC operations. The Bermuda Monetary Authority (BMA) granted Circle a comprehensive license in 2021, and the company has maintained a presence in the jurisdiction since then. Allaire’s comments underscore the strategic importance of Bermuda in Circle’s global operations, particularly in the realm of digital financial products.

Premier of Bermuda David Burt also commented on the development, stating that digital financial products like USYC and USDC are strengthening Bermuda’s digital connectivity and its leadership in international business markets. This endorsement from the Bermuda government further solidifies the region’s role as a hub for digital asset innovation and regulation.

By bringing USYC under Bermuda’s regulatory framework, Circle aims to leverage the jurisdiction’s robust regulatory environment to enhance the stability and credibility of its tokenized money market fund. This move is part of Circle’s broader strategy to expand its offerings and attract more institutional investors by providing a secure and compliant platform for digital assets.

The integration of USYC with USDC is expected to create a more cohesive ecosystem for digital assets, allowing for greater interoperability and liquidity. This development is likely to benefit both retail and institutional investors by providing them with more options for yield-bearing assets and stablecoins. The move also underscores Circle’s commitment to innovation and its efforts to stay at the forefront of the digital asset industry.