Circle Internet Group is broadening its tokenized financial services offerings in Bermuda.
The firm plans to bring the Hashnote Tokenized Money Market Fund under its current Digital Assets Business Act license issued by the Bermuda Monetary Authority, as announced in a recent statement.
Hashnote issues USYC, a tokenized money market fund that had nearly $1 billion in assets as of March 6, 2025. Tokenized money market funds operate similarly to their traditional counterparts but are represented as digital assets on blockchain platforms. This digital nature allows for easier buying and selling of shares in these funds by investors.
Circle is set to integrate USYC with USDC, its popular stablecoin, enabling seamless transitions between the two.
USYC as Collateral
This initiative could establish USYC as a significant form of collateral for cryptocurrency exchanges, custodians, and financial institutions dealing with digital assets. Collateral refers to the assets that traders and organizations pledge to secure loans or financial dealings.
Since 2021, Circle has been operating in Bermuda under the BMA’s regulatory framework. The company’s CEO, Jeremy Allaire, remarked that Bermuda’s regulatory stance on digital assets aligns perfectly with Circle’s growing tokenized money market efforts.
By connecting USYC to USDC, Circle aims to provide institutions with a more versatile means of accessing liquidity while benefiting from the yield generated by USYC’s underlying assets, which consist of U.S. Treasuries and various short-term investments.