NYSE-Parent ICE Partners With Circle to Develop Stablecoin and Tokenized Fund Products

ICE and Circle will explore using USDC and tokenized money market fund USYC in derivatives exchanges, clearinghouses, and other financial operations.

Key Points:

• Intercontinental Exchange (ICE), the parent company of the NYSE, is exploring new products using Circle’s USDC stablecoin and USYC tokenized money market fund.

• NYSE President Lynn Martin highlighted the growing trust in regulated stablecoins and digital currencies as equivalents to the U.S. dollar in capital markets.

• This initiative aligns with a broader trend of major U.S. financial institutions integrating digital assets as regulatory concerns ease.

Intercontinental Exchange (ICE), the parent company of the NYSE, has announced plans to explore the use of Circle’s USDC stablecoin and USYC tokenized money market fund for developing new financial products.

Under an agreement revealed on Thursday, the firms will assess how these digital assets can be integrated into derivatives exchanges, clearinghouses, and other financial services. This move aligns with a broader trend of major U.S. financial institutions expanding into crypto under the Trump administration.

NYSE President Lynn Martin emphasized the growing role of regulated stablecoins and tokenized digital currencies in capital markets, stating that they are becoming more widely accepted as equivalents to the U.S. dollar.

"We are excited to explore the potential use cases for USDC and USYC across ICE’s markets," Martin said in a statement.

USDC, the second-largest stablecoin after Tether’s USDT, has a $60 billion market cap and is fully backed by U.S. government securities and cash-equivalent assets. USYC, a tokenized money market fund, is issued by Hashnote, which Circle acquired earlier this year.

ICE’s move reflects a broader trend among major U.S. financial firms embracing digital assets, stablecoins, and tokenization as regulatory pressures ease under the Trump administration.

Recently, Fidelity Investments filed to launch a tokenized money market fund and is reportedly developing a stablecoin, while CME Group announced tests of tokenization with Google Cloud’s private distributed ledger, with plans to introduce new services next year. Tokenization, which places financial instruments like bonds and funds on blockchain, aims to enhance operational efficiency.

Last May, NYSE President Lynn Martin hinted at ICE’s growing interest in digital assets during Consensus 2024, noting that the exchange would consider crypto trading if U.S. regulations became more favorable.