Circle plans to bring $900M money market fund under DABA license

Circle, the creator of stablecoin USDC (USDC), introduced on March 13 plans to deliver its Hashnote Tokenized Cash Market Fund (TMMF) underneath Bermuda regulatory oversight by the corporate’s present Digital Property Enterprise Act (DABA) license.

Hashnote, which Circle acquired in January 2025, is the issuer of USDY, the biggest tokenized treasury and cash market fund with a complete worth locked (TVL) of $900 million, in response to DefiLlama. The fund’s TVL has fallen from $1.9 billion as of Jan. 7.

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In response to the announcement, Circle intends to totally combine USDY with USDC, which might enable for entry between the TMMF and the stablecoin. The corporate believes that it will make USDY “the popular kind” of yield-bearing collateral on crypto exchanges, together with for custodians and brokers.

In response to Freeman Regulation, Bermuda enacted one of many first authorized and regulatory frameworks for governing digital property. Circle was the primary agency in crypto to obtain a license underneath the Bermuda Financial Authority in September 2021. Bermuda’s Digital Property Enterprise Act at the moment permits three kinds of licenses for firms conducting enterprise underneath the Act.

Tokenized RWAs a “$30-trillion alternative”

In August 2024, Colin Butler, Polygon’s head of institutional capital, stated that tokenized real-world property (RWAs) are a $30-trillion market alternative globally. He believed that the push would seemingly come from high-net-worth people who will allocate cash to different property as tokenization creates liquidity in beforehand illiquid markets.

Additionally, in August 2024, it was predicted that tokenized US Treasurys would surpass a $3 billion market capitalization by the top of 2024. In response to RWA.xyz, the tokenized US Treasurys market cap sits at $4.2 billion on the time of this writing. Hashnote is the No. 2 protocol for tokenized US Treasurys, in response to the platform, though its market cap has fallen 21% up to now 30 days.

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The general market cap for RWAs surpassed $15.2 billion on the finish of 2024, pushed largely by institutional gamers who piloted tokenization initiatives associated to a number of real-world items, together with actual property, gold, diamonds and carbon credit. The market cap initially reclaimed an all-time excessive of $17.1 billion on Feb. 3 however has since gone even additional, rising to $18.1 billion on the time of this writing.

Tokenization is altering totally different areas of finance, together with creating liquidity for illiquid property and leveraging the blockchain to facilitate clear and environment friendly transactions. It isn’t restricted to a single kind of asset, which provides the expertise broader use instances.

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