Binance and Circle Launch Tokenized Treasury Stablecoin for Institutional Collateral Use
- Binance and Circle now offer USYC stablecoin as secure collateral for institutional derivatives trading.
- USYC allows fast conversion to USDC which helps institutions move capital easily between funds and stablecoins.
- Tokenized Treasury assets like USYC are growing fast as institutions seek stable and yield generating blockchain tools.
Binance and Circle have partnered to integrate the USYC stablecoin into institutional derivatives trading. The stablecoin will now serve as non-exchangeable collateral. This move allows institutional traders to retain control of their assets during trading.
The USYC stablecoin represents shares in the Hashnote International Short Duration Fund. This fund is backed by short-term U.S. Treasury bills. It operates as a tokenized money market fund with institutional-level yield potential.
Collateral Now Held in Custody Instead of Exchanges
The integration lets clients keep USYC in third-party custody. They may now use Binance Banking Triparty or Ceffu for storage. This method avoids delivering assets directly to exchanges. As a result, it enhances asset security and limits exposure.
Holding USYC in custody enables margin trading without compromising ownership. It also allows users to earn yield on their margin capital. Traders gain both passive income and full access to collateral.
Stablecoin Offers Fast Liquidity and Conversion
USYC includes a feature that allows near-instant conversion into USDC. This helps institutions shift funds quickly between yield-bearing products and stablecoins. It supports flexible capital strategies with minimal delay.
This dual-purpose model appeals to institutions seeking stability and liquidity. With one asset, they gain access to yield and immediate liquidity. The setup also reduces settlement risk and increases market responsiveness.
Demand for Tokenized Treasuries Continues to Grow
The USYC launch comes as tokenized Treasury assets see rising institutional demand. These products have nearly doubled in volume since January 2025. Institutions now prefer blockchain-native assets that offer predictable returns.
Tokenization simplifies access to traditional financial products on-chain. It also improves settlement speeds and supports round-the-clock trading. Institutions benefit from faster execution and lower risk.
The USYC stablecoin is issued directly on the BNB Chain. This provides access to blockchain infrastructure for capital markets. Institutions now interact with stable, yield-generating assets in a secure environment.
Circle Aligns Product Expansion with Regulatory Developments
Circle continues to position itself within regulated U.S. financial systems. The firm has applied for a National Trust Bank charter. It also advances its plans for an initial public offering in the U.S.
These developments show a blend of traditional finance with digital assets. Institutions now operate across both worlds without friction. The USYC stablecoin supports that transition by offering programmable, compliant, and secure financial tools.
Circle and Binance aim to modernize institutional trading with secure, liquid, and flexible products. Their collaboration highlights the shift toward on-chain finance with practical use in real-world markets.
