Binance integrates Circle's yield-bearing USYC asset in latest partnership between the crypto giants

Binance is integrating Circle’s yield-bearing USYC asset as a collateral option for the exchange’s institutional clients. The move is the latest partnership between Circle Internet Group Inc. Circle Internet Group, Inc. (ticker CRCL), which historically has had ties to rival Coinbase, and Binance. 

As part of the initiative, Binance institutional customers can now hold USYC — a tokenized money market fund not dissimilar to BlackRock’s BUIDL fund — and use it as off-exchange collateral for derivatives trades. USYC will also be natively issued on BNB Chain, “enabling USYC users to more seamlessly explore the onchain world.” 

“We’re committed to building secure, accessible, and capital-efficient offerings for institutions,” Head of Binance VIP & Institutional Catherine Chen said in a statement. “The integration of USYC into Binance’s trading environment represents a major step forward in our support for the future of capital markets.”

USYC was integrated into Circle after the stablecoin issuer purchased Hashnote, a tokenization startup incubated by Cumberland Labs, for an undisclosed sum. The fund has about $686 million worth of assets represented onchain, largely including U.S. government securities through reverse repurchase agreements, according to RWA.xyz. 

USYC offers “near-instant fungibility” with Circle's USDC stablecoin, offering a bridge to move between tokenized cash and Treasuries. It also functions as a yield-bearing collateral option on crypto exchanges and with custodians and prime brokers. 

Crypto industry giants Circle and Binance entered a strategic partnership late last year in a bid to make the USDC stablecoin “more extensively available across [Binance’s] full suite of products and services” and add to Binance’s corporate treasury. The move was significant given Circle’s close alignment with Coinbase, which earns a significant portion of USDC distribution fees. 

Circle went public to much fanfare in June. CRCL is currently trading around $191.84, more than double its IPO price, according to The Block’s price page.