{"id":8887,"date":"2025-01-21T15:37:31","date_gmt":"2025-01-21T15:37:31","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=8887"},"modified":"2025-01-21T15:37:31","modified_gmt":"2025-01-21T15:37:31","slug":"circle-enters-tokenization-race-by-acquiring-hashnote-1-3b-real-world-asset-issuer","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=8887","title":{"rendered":"Circle Enters Tokenization Race by Acquiring Hashnote, $1.3B Real-World Asset Issuer"},"content":{"rendered":"
\n

Circle, the crypto company behind the $48 billion USDC stablecoin, said Tuesday it has acquired tokenized real-world asset (RWA) issuer Hashnote.<\/p>\n<\/p>\n

The companies closed the deal this morning, a Circle spokesperson told CoinDesk and was announced in Davos, Switzerland during the annual World Economic Forum meeting. The companies didn’t reveal pricing details.<\/p>\n<\/p>\n

Circle aims to integrate USYC with USDC, Circle\u2019s flagship stablecoin, enabling convertibility between cash and yield-bearing collateral on blockchains, the press release said. Hashnote issues the $1.3 billion USYC token, which saw massive growth<\/a> last year to become the largest tokenized U.S. Treasury product on the market, according to rwa.xyz data<\/a>.<\/p>\n<\/p>\n

Circle\u2019s CEO, Jeremy Allaire, said this marks a significant step toward aligning traditional financial structures with the speed and transparency of blockchain-based markets.<\/p>\n<\/p>\n

“This is a huge unlock for a market that is increasingly being driven by institutional adoption, and where participants increasingly expect market structures that are common in TradFi,\u201d Allaire said.<\/p>\n<\/p>\n

Circle shared plans<\/a> a year ago to go public, and the crypto industry widely expects the public share offering to happen later this year.<\/p>\n

Tokenization and stablecoins<\/h3>\n<\/p>\n

The acquisition underscores the synergies between two of the hottest trends in crypto: stablecoins and tokenization. Circle’s main stablecoin competitor Tether launched a tokenization platform<\/a> last year.<\/p>\n<\/p>\n

Stablecoins, a $200 billion asset class of cryptocurrencies with prices pegged predominantly to the U.S. dollar, are a crucial piece of infrastructure in tokenization efforts. They are used as a bridge between fiat money and digital assets and widely used for settling transactions on blockchain rails.<\/p>\n<\/p>\n

Tokenized RWAs like treasury bills and money market funds are quickly gaining traction among sophisticated investors and asset managers as collateral for trading. Unlike in traditional markets, blockchain-based assets promise transparency, accessibility and around-the-clock settlements. Treasury-backed tokens also allow investors to earn a yield while posted as collateral or margin for trades, enhancing returns compared to trades collateralized with fiat money or stablecoins.<\/p>\n<\/p>\n

For example, Singapore-based hedge fund QCP Capital earlier in January executed<\/a> a bitcoin (BTC) basis trade using BUIDL, the money market fund token issued by BlackRock and Securitize.<\/p>\n<\/p>\n

USDC on Canton<\/h3>\n<\/p>\n

Circle also announced that it struck a deal with Cumberland, a DRW-affiliated crypto trading firm and market maker, to provide liquidity and facilitate settlements for USDC and USYC. The partnership aims to expand USYC as a form of collateral on exchanges and custodial platforms.<\/p>\n<\/p>\n

Additionally, Circle laid out plans to deploy USDC on the Canton Network, a blockchain used by traditional financial institutions for real-world asset transactions. The integration with Canton would allow for constant liquidity between cash and collateral and allows seamless transfers between decentralized and traditional markets.<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Circle, the crypto company behind the $48 billion USDC stablecoin, said Tuesday it has acquired tokenized real-world asset (RWA) issuer Hashnote. The companies closed the deal this morning, a Circle spokesperson told CoinDesk and was announced in Davos, Switzerland during the annual World Economic Forum meeting. The companies didn’t reveal pricing details. Circle aims to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-8887","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8887"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8887\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}