Circle Aims to Bring $1B Tokenized Treasury Issuer Hashnote Under Bermuda's Regulatory Framework

Earlier this year, the stablecoin issuer acquired Hashnote, with plans to enhance its USYC token as a collateral choice for institutional investors.

Key Points to Know:

• USDC stablecoin issuer Circle plans to bring its recently acquired Hashnote Tokenized Money Market Fund under Bermuda’s regulatory oversight, integrating it into its existing Digital Assets Business Act license.
• Hashnote issues USYC, the largest tokenized money market fund with nearly $1 billion in assets.
• Circle CEO Jeremy Allaire views Bermuda as a "natural choice" for USYC operations due to its established role in digital asset regulation.

Circle Internet Group, Inc., the company behind the $58 billion USDC stablecoin, announced on Thursday its intention to bring its recently acquired Hashnote Tokenized Money Market Fund (TMMF) under the regulatory framework of Bermuda. The fund, which manages close to $1 billion in assets, will be integrated into Circle’s existing Digital Assets Business Act (DABA) license.

Hashnote issues USYC, the largest tokenized money market fund, according to rwa.xyz data. By linking USYC with USDC, Circle aims to enable smooth transitions between a yield-generating asset and one of the most widely adopted stablecoins, while also positioning USYC as a collateral option on exchanges, custodians, and prime brokers.

Circle CEO Jeremy Allaire highlighted Bermuda's importance in digital asset regulation, describing it as a "natural choice" for USYC operations. The Bermuda Monetary Authority (BMA) granted Circle a comprehensive license in 2021, and the company has since maintained operations within the jurisdiction.

"Digital financial products like USYC and USDC are enhancing Bermuda’s digital connectivity and reinforcing our leadership in international business markets," said David Burt, Premier of Bermuda, in a statement.