Circle Taps Binance to Launch Yield-Bearing Stablecoin USYC

Circle has announced a new partnership with cryptocurrency exchange Binance to launch USYC, a yield-generating stablecoin. According to a press release, this tokenized money market fund (TMMF) stablecoin will be available on Binance’s trading platform for institutions. 

USYC Stablecoin Brings Lots of Benefits to Binance and Circle

USYC stablecoin enables users to earn secure and efficient returns by investing in tokenized U.S. Treasury securities. With this new partnership, Binance’s institutional clients can use USYC as collateral off the exchange. This change dramatically improves liquidity and capital efficiency for experienced traders and institutions.

Notably, this approach will also help companies keep control of their assets while taking advantage of the strong liquidity and yield opportunities offered by Binance’s trading system. It is also worth noting that the token will be created on BNB Chain.

The move is part of a larger trend in the cryptocurrency and fintech industries, where tokenized real-world assets, like U.S. Treasury bills, are gaining popularity. For Binance, this partnership will improve its services for institutional clients. This move also shows Binance’s commitment to expanding its offerings while adapting to changing global regulations.

USYC: A New Stablecoin That Offers Interest

Ultimately, USYC allows institutional investors to access regulated, fully backed, and transparent financial products. It serves as a link between traditional finance and decentralized markets. USYC offers a 3.8% return on its financial operations.

This stablecoin was initially developed by Hashnote, a crypto platform that Circle acquired earlier this year. While holding USYC, investors can earn passive income over time. 

Lynn Martin, president of the NYSE, is optimistic about the stablecoin market. She shared that stablecoins like USDC and USYC could become reliable alternatives to traditional money for businesses and institutions.

Binance’s interest in these digital assets shows that big financial companies are taking stablecoins more seriously.

New Stablecoin Rules Attract Big Institutions

Recently, U.S. lawmakers introduced a new bill to regulate the stablecoins sector. If passed, the law will require stablecoin issuers to be licensed as banks or state-approved financial institutions. The bill also calls for regular audits and requires that stablecoins be backed one-to-one with cash or low-risk government assets. Monthly reports will also be needed to ensure transparency.

Additionally, the new bill proposes to restrict algorithmic stablecoins and foreign stablecoins that do not meet U.S. regulations. Recall that Tether’s CEO, Paolo Ardoino, has affirmed that many companies and institutions are starting to create their stablecoins, reflecting market changes.