Intercontinental Exchange, which oversees the New York Stock Exchange, has revealed plans to investigate the potential use of Circle’s stablecoin and tokenized assets to create new financial products. This move aligns with a growing trend among traditional financial institutions in the U.S. to explore cryptocurrency opportunities during the Trump presidency.
In a recent announcement, the two organizations stated they would explore integrating Circle’s USDC stablecoin and USYC tokenized money market fund into various services, such as derivatives exchanges and clearinghouses.
Lynn Martin, the president of the New York Stock Exchange, expressed optimism about the role of Circle’s regulated stablecoins and tokenized digital currencies in capital markets. “As digital currencies gain trust among market participants, we see them becoming a viable alternative to the U.S. dollar,” she noted. “We look forward to probing the possible applications of USDC and USYC across ICE’s offerings.”
USDC ranks as the second-largest stablecoin after Tether’s USDT, boasting a market cap of $60 billion. It is completely backed by U.S. government securities and cash-equivalent assets. Meanwhile, USYC is a money market fund token created by Hashnote, which Circle acquired earlier this year.
The move by ICE exemplifies how major U.S. financial players are increasingly tapping into the world of digital assets, stablecoins, and tokenization amid a more favorable regulatory landscape breaking under the Trump administration.
Recently, asset management firm Fidelity Investments submitted a filing to introduce a tokenized money market fund and is reportedly developing its own stablecoin. Additionally, the derivatives exchange CME Group is experimenting with tokenization through Google Cloud’s private distributed ledger, with plans to unveil new services in the coming year. The concept of tokenization involves shifting financial instruments like bonds and securities onto blockchain technology to enhance operational efficiency.
Last May, at a Consensus 2024 panel discussion, Martin hinted at the firm’s interest in digital assets, indicating that the exchange would be open to offering cryptocurrency trading if there were greater regulatory clarity in the U.S.