Latest news with #USYC
Yahoo
6 days ago
- Business
- Yahoo
Binance adds USYC as Circle expands footprint of its yield-bearing stablecoin
Circle on Thursday announced that the world's biggest crypto exchange would begin accepting USYC, a type of stablecoin that shares yield with investors, as collateral from institutional clients. While the news will be of interest primarily to a niche subset of traders, the new arrangement is significant as another step in the rapid integration of the traditional and crypto realms of finance. Circle, a newly public company that is the world's second biggest issuer of stablecoins, acquired USYC as part of a larger acquisition in January. USYC stands out from most other stablecoins in that it is a tokenized version of a money-market fund and, unlike conventional stablecoins like USDC and Tether, it shares interest proceeds with those who hold it. According to Circle's chief business officer, Kash Razzaghi, the importance of USYC also lies in its appeal to institutional traders as a source of collateral. Many of these traders currently post money-market securities as collateral when they want to trade on crypto platforms like Binance. While this arrangement works well for purposes of trading, it is also cumbersome because it can take a day or more to settle a transaction—especially on weekends when the traditional financial system, which unlike crypto does not run 24/7, is closed. This is not the case when traders post USYC, Razzaghi explained, since the collateral can be instantly redeemed for its companion stablecoin USDC, which is fast becoming a practical alternative to traditional dollars. While many institutional traders who use platforms like Binance post collateral in Bitcoin or other crypto assets, some traditional organizations remain reluctant to do so. According to Catherine Chen, Binance's head of VIP and institutional, this is in part because the infamous collapse of FTX left many wary of leaving collateral on an exchange. Chen added that Binance has sought to address this concern with an offering called Banking Triparty that involves the company working with traditional banks to let them act as custodians, and post assets held at the bank as collateral for crypto trading. She added that many of these same partners are working with Binance on integrating USYC, which would provide for faster settlement. On Thursday, Binance also announced that it would likewise be integrating cUSDO, another yield-bearing stablecoin; cUSDO (a.k.a. OpenEden OpenDollar) is issued by OpenEden Digital, a Bermuda-licensed and regulated entity. This story was originally featured on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Cision Canada
6 days ago
- Business
- Cision Canada
Binance integrates Tokenized Real-World Assets USYC and cUSDO into Off-Exchange Settlement Solutions
Largest crypto exchange will waive banking triparty fee and absorb institutional custody partner Ceffu's MirrorX and MirrorRSV service fees until 2026 DUBAI, UAE, July 24, 2025 /CNW/ -- Binance, the world's leading blockchain ecosystem behind the largest cryptocurrency exchange by trading volume and user base, is pleased to announce it will support tokenized yield-bearing assets USYC and cUSDO through Binance Banking Triparty as well as through its institutional custody partner Ceffu, giving institutional users the additional choice of holding USYC and cUSDO off-exchange while simultaneously enjoying seamless access to the Binance platform and receiving yield on their pledged collateral. This integration expands the range of supported collateral for institutional users beyond traditional assets such as fiat currencies and Treasury bills on Binance Banking Triparty, and beyond native crypto assets such as bitcoin on Ceffu. Tokenization of real-world assets excluding stablecoins has increased to $24 billion in June 2025 from $15.2 billion in December 2024, and is projected to reach up to 30% of traditional finance assets worth over $400 trillion by 2034, indicating a potential exponential growth of over 100x for crypto which currently has a market cap of $3 trillion. "Our integration of tokenized real-world assets demonstrates our continued focus to enhance user experience on Binance. By supporting USYC and cUSDO on Binance Banking Triparty as well as through our custody partner Ceffu, we are offering our institutional clients more choices to optimize their capital efficiency while balancing risk control requirements," said Catherine Chen, Head of Binance VIP & Institutional."Tokenization of real-world assets enables users to benefit from the inherent properties of digital assets, such as faster and cheaper settlement, 24/7 availability, and on-chain transparency, and will unlock further crypto adoption." "This collaboration with Binance marks a meaningful advancement in how institutions can engage with tokenized real-world assets," said Kash Razzaghi, Chief Business Officer at Circle. "By making USYC available as off-exchange collateral with yield potential, we're bringing capital efficiency and risk-managed optionality to institutional investors—bridging traditional finance and blockchain-powered markets." "We're entering a new phase of institutional crypto adoption, where compliance focused, yield-bearing assets like cUSDO are becoming central to how capital is deployed on-chain," said Jeremy Ng, Founder and CEO of OpenEden. "cUSDO's integration into Binance Banking Triparty and their custody partner Ceffu showcases how institutional-grade RWAs can deliver the capital efficiency and security needed to drive meaningful participation from institutions." USYC is the digital representation of interests in Hashnote International Short Duration Yield Fund Ltd, a tokenized money market fund (TMMF) registered in the Cayman Islands (the "Fund"). The Fund invests primarily in reverse repurchase agreements backed by U.S. government securities. The Fund offers near-instant redemption into USDC. USYC will also be natively issued on BNB Chain, increasing its on-chain accessibility to more users. cUSDO is a wrapped version of OpenEden OpenDollar ("USDO"), a rebasing yield-bearing stablecoin issued by OpenEden Digital, a Bermuda-licensed and regulated entity. cUSDO and USDO let holders earn yield generated from reserves backed by U.S. Treasury bills and reverse repurchase agreements. Binance's Global and Growing Banking Triparty Coverage Binance was the first crypto exchange to introduce a triparty banking solution modeled after traditional finance in 2023, enabling institutional clients to custody their trading collateral under their own corporate account with a network of regulated banking partners, while enjoying seamless access to Binance's full suite of institutional solutions and unparalleled deep liquidity. To meet demand, Binance has expanded its network of triparty bank partners to enable institutional clients worldwide to meet their risk controls and confidently enter crypto while scaling for growth. With Binance Banking Triparty, clients can scale their trading activity on Binance in line with their capital, directly enhancing liquidity on the exchange to benefit all users. From now until 2026, Binance is waiving banking triparty fees and will also absorb Ceffu's MirrorX and MirrorRSV service fees to help more institutions accelerate their adoption. Users interested in Binance's off-exchange solutions can visit Binance Banking Triparty and Ceffu, or contact their Binance VIP & Institutional representative. Disclaimer USYC is a digital asset token. Each USYC token serves as a digital representation of a share of the Hashnote International Short Duration Fund Ltd. (the "Fund"), a Cayman Islands registered mutual fund. The Fund has appointed Circle International Bermuda Limited ("CIBL"), a Bermuda Monetary Authority licensed digital asset business, as its token administrator, responsible for the management of USYC on behalf of the Fund. Shares of the Fund and USYC are only available to non-U.S. Persons, as defined under the Securities Act of 1933, as amended. Additional eligibility restrictions may apply. For additional details or to request Fund documentation, please contact [email protected]. References to the digital assets (USDO and its wrapped version cUSDO) in this communication herein are for information purposes only and are not intended to and do not constitute an offer to sell or the solicitation of an offer to buy, or an invitation to purchase, exchange or subscribe for USDO or cUSDO. USDO and cUSDO are digital assets issued by OpenEden Digital, a digital asset issuer licensed by the Bermuda Monetary Authority and have not been and will not be registered with any regulatory authority or framework, including under the US Securities Act of 1933, as amended, and may not be offered or sold in the US or such other restricted jurisdictions, including jurisdictions where such offer or sale is in contravention of applicable law, except pursuant to an applicable exemption from registration. No public offering of USDO and cUSDO is being made in the US or restricted jurisdictions. To learn more, please visit Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. Past performance is not a reliable indicator of future performance. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning. Binance is a leading global blockchain ecosystem behind the world's largest cryptocurrency exchange by trading volume and registered users. Binance is trusted by more than 280 million people in 100+ countries for its industry-leading security, transparency, trading engine speed, protections for investors, and unmatched portfolio of digital asset products and offerings from trading and finance to education, research, social good, payments, institutional services, and Web3 features. Binance is devoted to building an inclusive crypto ecosystem to increase the freedom of money and financial access for people around the world with crypto as the fundamental means.
Economic Times
16-07-2025
- Business
- Economic Times
Digital dollars will pay interest — by the back door
This year is proving to be something of a 'ChatGPT moment' for stablecoins. But while the excitement is palpable, their utility is still unclear. They are useful to exchange fiat money for speculative assets like Bitcoin. However, outside the world of cryptocurrencies, why would anyone want to hold tokens that are prohibited from paying their users anything? ADVERTISEMENT The upcoming US regulations for these 1:1 blockchain copies of the greenback have led to aggressive forecasts of where the $260 billion market is headed. Some of that enthusiasm is visible in Circle Internet Group Inc.'s shares, which have risen sixfold over their $31 initial public offering price last month. Circle's USDC is the second-most-popular digital dollar after Tether's USDT. Stablecoins are also benefiting from a general crypto rush, with Bitcoin soaring to a record $120,000 this week. The higher the price of the industry bellwether, the greater the demand for digital dollars to trade the asset efficiently in spot and derivative markets. However, to turbocharge mass adoption and propel the market to $3 trillion or more by 2030, requires precisely what authorities nearly everywhere, including the US, will not allow: yield-bearing thinking is that these tokens are private representations of sovereign money. To fulfil their promise of converting on par to government-issued currency, issuers must park their funds in liquid short-dated treasury bills and earn returns only for their shareholders. Should they be permitted to also produce a yield for depositors, they would become lightly regulated shadow banks, enticing customers by taking risks that may not always be apparent to authorities. But the industry will not be stymied by such obstacles. While regulated stablecoins themselves may not pay interest, they can offer near-instantaneous, two-way exchange into something that can. And that product is a tokenised money-market fund. Earlier this year, Circle acquired Hashnote, the issuer of USYC, a yield-bearing coin backed by short-term US Treasury securities. ADVERTISEMENT Suppose a crypto enthusiast wants to buy a Bitcoin option. She can convert her USDC to USYC, and use it to fund her account the same day at Deribit, a popular crypto derivatives exchange. The collateral will earn interest that USDC can't. With tokenised funds, transfers can occur instantly, with 'dividends calculated precisely, down to the second.' As much as $5.7 trillion of cash is sitting in traditional government money-market funds that invest in US Treasuries. It isn't just the crypto upstarts circling around the huge market. Large asset managers are offering their own blockchain products. BlackRock Inc.'s BUIDL fund tokens are now acceptable collateral at both Deribit and Franklin Templeton has brought its tokenised US dollar money-market fund to Singapore's retail investors. In Hong Kong, existing money-market funds are starting to offer new shares on the blockchain. There may be more of these when the city starts issuing licenses for Hong Kong dollar stablecoins. ADVERTISEMENT The market value of stablecoins currently, when they're dominated by USDT and USDC, is approaching 5% of government money-market funds. Expect that figure to rise as new players enter, offering seamless swaps between digital dollars and yield-bearing tokenised a high-interest-rate environment, stablecoin demand suffers because of the opportunity cost of holding an instrument that pays nothing. A combo package, in which stablecoins are preferred for payments and money-market funds are used to post collateral, is the likely future of digital money. Tokens that offer convertibility at par into the sovereign unit of account while paying market rates of interest will potentially reshape the stablecoin market, the Bank for International Settlements said in a bulletin last week. ADVERTISEMENT For financial regulators, that may not be a blessing. As Yale School of Management finance professor Gary Gorton and former Federal Reserve attorney Jeffery Zhang pointed out in their 2021 paper, Taming Wildcat Stablecoins, money-market funds, which have avoided being regulated as bank deposits, had to be bailed out twice in just over a decade: during the 2008 crisis, and when Covid-19 struck. 'If policymakers wait a decade, stablecoins might become a multitrillion-dollar industry — too big to fail — and the government will have to step in with a rescue package whenever there's a financial panic.' Also read: Mutual funds dump Rs 1,700 crore worth of 9 defence stocks. Too expensive to buy or smart exit? ADVERTISEMENT Pressure from the industry is going to push authorities to accept that risk. Eventually, the crypto world's cash will pay interest by the back door. That's when stablecoins will go truly mainstream and become a raging headache for regulators worldwide.
Time of India
16-07-2025
- Business
- Time of India
Digital dollars will pay interest — by the back door
Tired of too many ads? Remove Ads Crypto TrackerPowered By TOP COINS TOP COIN SETS Ethereum 2,71,555 ( 5.9 %) Buy XRP 251.82 ( 2.74 %) Buy Solana 14,085.42 ( 2.25 %) Buy BNB 59,365 ( 1.51 %) Buy Bitcoin 1,01,50,163 ( 1.08 %) Buy Tired of too many ads? Remove Ads This year is proving to be something of a 'ChatGPT moment' for stablecoins . But while the excitement is palpable, their utility is still unclear. They are useful to exchange fiat money for speculative assets like Bitcoin . However, outside the world of cryptocurrencies, why would anyone want to hold tokens that are prohibited from paying their users anything?The upcoming US regulations for these 1:1 blockchain copies of the greenback have led to aggressive forecasts of where the $260 billion market is headed. Some of that enthusiasm is visible in Circle Internet Group Inc.'s shares, which have risen sixfold over their $31 initial public offering price last month. Circle's USDC is the second-most-popular digital dollar after Tether's are also benefiting from a general crypto rush, with Bitcoin soaring to a record $120,000 this week. The higher the price of the industry bellwether, the greater the demand for digital dollars to trade the asset efficiently in spot and derivative to turbocharge mass adoption and propel the market to $3 trillion or more by 2030, requires precisely what authorities nearly everywhere, including the US, will not allow: yield-bearing thinking is that these tokens are private representations of sovereign money. To fulfil their promise of converting on par to government-issued currency, issuers must park their funds in liquid short-dated treasury bills and earn returns only for their shareholders. Should they be permitted to also produce a yield for depositors, they would become lightly regulated shadow banks, enticing customers by taking risks that may not always be apparent to the industry will not be stymied by such obstacles. While regulated stablecoins themselves may not pay interest, they can offer near-instantaneous, two-way exchange into something that can. And that product is a tokenised money-market fund. Earlier this year, Circle acquired Hashnote, the issuer of USYC, a yield-bearing coin backed by short-term US Treasury securities Suppose a crypto enthusiast wants to buy a Bitcoin option. She can convert her USDC to USYC, and use it to fund her account the same day at Deribit, a popular crypto derivatives exchange . The collateral will earn interest that USDC can't. With tokenised funds, transfers can occur instantly, with 'dividends calculated precisely, down to the second.'As much as $5.7 trillion of cash is sitting in traditional government money-market funds that invest in US Treasuries. It isn't just the crypto upstarts circling around the huge market. Large asset managers are offering their own blockchain products. BlackRock Inc.'s BUIDL fund tokens are now acceptable collateral at both Deribit and Franklin Templeton has brought its tokenised US dollar money-market fund to Singapore's retail investors. In Hong Kong, existing money-market funds are starting to offer new shares on the blockchain. There may be more of these when the city starts issuing licenses for Hong Kong dollar market value of stablecoins currently, when they're dominated by USDT and USDC, is approaching 5% of government money-market funds. Expect that figure to rise as new players enter, offering seamless swaps between digital dollars and yield-bearing tokenised a high-interest-rate environment, stablecoin demand suffers because of the opportunity cost of holding an instrument that pays nothing. A combo package, in which stablecoins are preferred for payments and money-market funds are used to post collateral, is the likely future of digital money. Tokens that offer convertibility at par into the sovereign unit of account while paying market rates of interest will potentially reshape the stablecoin market, the Bank for International Settlements said in a bulletin last financial regulators, that may not be a blessing. As Yale School of Management finance professor Gary Gorton and former Federal Reserve attorney Jeffery Zhang pointed out in their 2021 paper, Taming Wildcat Stablecoins, money-market funds, which have avoided being regulated as bank deposits, had to be bailed out twice in just over a decade: during the 2008 crisis, and when Covid-19 struck. 'If policymakers wait a decade, stablecoins might become a multitrillion-dollar industry — too big to fail — and the government will have to step in with a rescue package whenever there's a financial panic.'Also read: Mutual funds dump Rs 1,700 crore worth of 9 defence stocks. Too expensive to buy or smart exit? Pressure from the industry is going to push authorities to accept that risk. Eventually, the crypto world's cash will pay interest by the back door. That's when stablecoins will go truly mainstream and become a raging headache for regulators worldwide.
Axios
29-04-2025
- Business
- Axios
The stablecoin biz is developing fast
Stablecoin legislation is already having a big impact and neither chamber has even had a floor vote on it yet. The big picture: Stablecoin projects are coming fast and furious, fueled by expectations of a liquidity wave once the world's biggest economy gives its official nod. Standard Chartered experts project stablecoins to become a multitrillion-dollar category by 2028 if legislation passes that sanctions the sector. Context: That's comparable to the entire industry's market cap today. New entrants will find that stablecoins are a good business as long as interest rates aren't zero. Backed by reserves, usually U.S. Treasuries, they're a great business if rates are high. But that's a lot of sensitivity to forces outside your control, as Coin Metrics points out in its review of Circle's S-1. It also helps if your token is really popular, and it turns out that competing for market share is expensive. New trends are emerging. Some might not be as profitable, and others may not even be permitted out of the gate. Yield-bearing stablecoins could help attract market share. But they could also chip into an issuer's profits, even when rates are strong. Circle has gotten ahead of the trend by acquiring a coin designed for yield, USYC. Other products are coming at a steady clip. We've mentioned the $5 billion synthetic dollar, USDE, before, but another such delta-neutral stablecoin with yield built in got seed funding this week, NUSD. (Stablecoin legislation looks likely to forbid those kinds of tokens here — for now.) Zoom out: There's also more to the stablecoin industry than just issuing the tokens. Startups are forming to build out the use case beyond market liquidity, including companies that use stablecoins for remittances, payroll, cross-border transactions and treasury management. FalconX, one of the custody firms from the prior item, projects perhaps 50 new entrants to the stablecoin market this year (and the company is in a good position to do better than guess).
