USDC stablecoin issuer Circle has acquired Hashnote, the issuer of the largest tokenized money market fund (MMF), USYC. Hashnote was incubated by DRW’s crypto arm Cumberland Labs and currently has a market capitalization of $1.25 billion. That’s twice BlackRock’s money market fund BUIDL.
While Hashnote has done a great job of getting USYC accepted as collateral by the likes of option exchange Deribit, as of today it is very reliant on a five month-old stablecoin, Usual. In fact, 97% of the USYC MMF is held by the Usual protocol, which is starting to diversify its reserves.
Circle believes it will be able to make USYC the ‘preferred’ yield bearing asset with crypto exchanges, custodians and prime brokers. Together they want to make it even more seamless to move between stablecoins and tokenized MMFs.
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