Binance has announced it will now support Circle’s USYC stablecoin for institutional clients. USYC, a yield-bearing digital asset backed by U.S. Treasury securities, will serve as off-exchange collateral on Binance’s institutional trading platform.
Circle’s USYC Now Available on Binance Platform
This partnership marks a key moment in expanding real-world asset access across blockchain networks. Institutional traders can now hold USYC through Binance Banking Triparty or with Ceffu, Binance’s institutional-grade custody partner. The stablecoin will also be natively issued on BNB Chain.
The integration introduces a new level of capital flexibility, letting traders use USYC as collateral for derivatives while still earning yield. The token’s design allows near-instant convertibility into USDC, improving liquidity and capital mobility across trading environments.
USYC is now supported as off-exchange collateral for @binance institutional clients, unlocking more capital efficient yield with tokenized U.S. Treasuries.
✅ TMMF backed by U.S. Treasuries
✅ Near-instant fungibility with USDCThis collaboration brings the power of tokenized… pic.twitter.com/YHBq0w7eUC
— Circle (@circle) July 24, 2025
Chief Business Officer at Circle, Kash Razzaghi, remarked that the USYC is structured in common mechanisms with the traditional markets. Razzaghi observes that the product can find its natural place within the context of contemporary digital collateral strategy since it is redeemable and has a stable profile of yield.
Binance, in person of Catherine Chen, Head of Binance VIP & institutional, believes in providing effective and safe products to professionals. She explained that the action indicates the direction of capital efficient trading infrastructure at the company.
Surging Demand for Tokenized Treasury Products
The decision follows a broader trend in the market. Tokenized assets tied to U.S. Treasuries have nearly doubled in demand since early 2025. Institutional investors increasingly seek blockchain-based instruments offering both yield and stability.
USYC represents interests in the Hashnote International Short Duration Yield Fund Ltd. The fund, based in the Cayman Islands, primarily invests in reverse repurchase agreements backed by U.S. government securities. This makes USYC functionally similar to short-term Treasury investments but with blockchain advantages.
Earlier this year, Circle acquired Hashnote as part of a strategic expansion move. That acquisition, reportedly worth $1.5 billion, brought USYC under Circle’s control and broadened its tokenized yield offerings.
USYC and cUSDO Now Accepted Collateral
In addition to USYC, Binance will also support cUSDO OpenEden’s wrapped, yield-bearing stablecoin as institutional collateral. Both USYC and cUSDO will be available off-exchange while generating yield for their holders.
The dual offering strengthens Binance’s institutional suite and adds momentum to the growing tokenized real-world asset space. This approach aligns with traditional finance practices, where off-exchange collateral is common among large asset managers.
As a company that is currently listed on the NYSE under the symbol CRCL, the decision can also serve to give reassurance to both the investors and partners.
Although the new market headwinds and analyst downgrades will be noted, the loss of core business is an indication of integration with Binance and further development into the long-term goal of Circle.
The synergy enables institutional traders with greater capabilities in balancing between liquidity, yield and blockchain-native execution, a behemoth that heralds in the dawn of a new age in tokenized finance.
