{"id":"hashnote-usyc","title":"Hashnote USYC","content":"**USYC (US Yield Coin)** is an on-chain representation of the [Hashnote](https://iq.wiki/wiki/hashnote) Short Duration Yield Fund (SDYF), issued by [Circle](https://iq.wiki/wiki/circle) International Bermuda Limited. The fund invests in short-term U.S. Treasury Bills and reverse repurchase agreements backed by U.S. government securities. Its primary strategy is to deploy assets in reverse repos to maximize liquidity and minimize duration risk. Following [Circle](https://iq.wiki/wiki/circle)'s acquisition of [Hashnote](https://iq.wiki/wiki/hashnote) in 2025, USYC provides investors with short-term risk-free rate returns while leveraging [blockchain](https://iq.wiki/wiki/blockchain) technology for transaction speed, transparency, and composability. [\\[5\\]](#cite-id-Blw03wMjZM) [\\[6\\]](#cite-id-lJysufZBN5aRCNR1) [\\[1\\]](#cite-id-77mtIAPzVt)\n\n# Overview\n\nUSYC (US Yield Coin) is the tokenized representation of the [Hashnote](https://iq.wiki/wiki/hashnote) International Short Duration Yield Fund Ltd. (SDYF), which is managed by an in-house Fixed Income team and invests primarily in short-term U.S. Treasury Bills and reverse repurchase agreements (reverse repos) backed by U.S. government securities. The fund earns yield based on the short-term Fed rate. The token provides returns based on short-term risk-free rates while leveraging [blockchain](https://iq.wiki/wiki/blockchain) for transaction efficiency and transparency. [\\[7\\]](#cite-id-edcCMIfdGpzVx1Ds) [\\[1\\]](#cite-id-77mtIAPzVt) Investors can mint or redeem USYC 24/7/365 with real-time (T+0) settlement in [USDC](https://iq.wiki/wiki/usdc) through an automated smart contract system for self-service transactions.\n\nThe token's issuer, [Circle](https://iq.wiki/wiki/circle) International Bermuda Limited, is regulated by the Bermuda Monetary Authority (BMA), while the underlying mutual fund is licensed by the Cayman Islands Monetary Authority (CIMA). USYC is only available to eligible non-U.S. Persons. The platform maintains transparency through regular asset and token price disclosures via an [Oracle](https://iq.wiki/wiki/oracle) feed, with all service, redemption, and management fees disclosed upfront. Security is ensured through segregated custodial accounts with a prime broker, external audits, and an externally-audited [ERC-20](https://iq.wiki/wiki/erc-20) token contract. [\\[1\\]](#cite-id-77mtIAPzVt) [\\[7\\]](#cite-id-edcCMIfdGpzVx1Ds)​\n\n# Acquisition by Circle\n\n## Acquisition by Circle\n\nIn January 2025, [Circle](https://iq.wiki/wiki/circle), the issuer of [USDC](https://iq.wiki/wiki/usdc), announced its acquisition of [Hashnote](https://iq.wiki/wiki/hashnote), the original issuer of USYC. At the time of the acquisition, RWA.xyz identified USYC as the world's largest tokenized money market fund, with 44 million to a peak of $1.6 billion. [\\[6\\]](#cite-id-lJysufZBN5aRCNR1) [\\[8\\]](#cite-id-uHfpQeuyQgPkpBzz)​\n\nThe acquisition was part of a broader strategy for [Circle](https://iq.wiki/wiki/circle) to enter the real-world asset (RWA) market and fully integrate USYC with [USDC](https://iq.wiki/wiki/usdc) to enable seamless conversion. The goal was to establish USYC as a preferred form of yield-bearing collateral in digital asset markets. Alongside the acquisition, [Circle](https://iq.wiki/wiki/circle) announced a strategic partnership with the global trading firm DRW, via its crypto-asset subsidiary Cumberland, to expand institutional liquidity and settlement services for both [USDC](https://iq.wiki/wiki/usdc) and USYC. [Circle](https://iq.wiki/wiki/circle) also announced plans to deploy native [USDC](https://iq.wiki/wiki/usdc) on the [Canton Network](https://iq.wiki/wiki/canton-network), a public blockchain where USYC was already supported, to facilitate 24/7 on-chain convertibility between the two assets. [\\[6\\]](#cite-id-lJysufZBN5aRCNR1)​\n\n# Tokenomics\n\nUSYC is a permissioned [ERC-20](https://iq.wiki/wiki/erc-20) token designed to accrue value based on the yield generated by the underlying Short Duration Yield Fund (SDYF). The fund's investments in short-term U.S. Treasury Bills and repo/reverse-repo agreements generate returns based on the short-term Fed rate. [\\[1\\]](#cite-id-77mtIAPzVt)\n\nThe token's price reflects the net asset value (NAV) of the fund's shares and is published regularly through an [Oracle](https://iq.wiki/wiki/oracle) feed. As the fund earns yield, the value of each share—and therefore each USYC token—is intended to increase over time. Investors mint USYC by depositing [USDC](https://iq.wiki/wiki/usdc) and redeem USYC for [USDC](https://iq.wiki/wiki/usdc) on a T+0 basis, with transactions processed 24/7/365. It is important to note that like other fixed-income assets, the underlying Treasury Bills can fluctuate in value. All associated service, redemption, and management fees are disclosed to investors upfront. [\\[1\\]](#cite-id-77mtIAPzVt)\n\n# Structure\n\n## Investor Onboarding\n\nInvestors can obtain USYC by onboarding to the fund. USYC is available only to non-U.S. Persons (as defined in Regulation S under the Securities Act of 1933) who onboard through the [Hashnote](https://iq.wiki/wiki/hashnote) Short Duration Yield Fund (SDYF), a Cayman Islands Monetary Authority (CIMA)-regulated mutual fund. USYC tokens represent fund shares, requiring all holders to complete [KYC](https://iq.wiki/wiki/know-your-customer-kyc)/[AML](https://iq.wiki/wiki/anti-money-laundering-aml) verification. The fund administrator updates the SDYF share registry to reflect USYC token transactions. [\\[3\\]](#cite-id-eWLvD1rUdr) [\\[4\\]](#cite-id-aU9EupcDii) [\\[7\\]](#cite-id-edcCMIfdGpzVx1Ds)\n\n## Subscription Workflow\n\n![](https://ipfs.everipedia.org/ipfs/QmUGaqC76DmvsTBrSCeRUqxyrWZNjosvmJQCh9dQN7Shaq)\n\nInvestors who complete onboarding to the fund have their wallet addresses added to an allowlist, granting permission to hold USYC. They can subscribe by transferring [stablecoins](https://iq.wiki/wiki/stablecoin) ([USDC](https://iq.wiki/wiki/usdc)) through the Smart Contract Teller, after which the fund allocates the capital to its Prime Brokerage for investment in T-Bills and repo/reverse-repo agreements. While these are considered low-risk assets, fixed-income instruments can lose value. Ownership is recorded on-chain via a permissioned [ERC-20](https://iq.wiki/wiki/erc-20) [smart contract](https://iq.wiki/wiki/smart-contract), with USYC tokens minted to the investor’s wallet in proportion to their fund shares. The number of USYC tokens received corresponds to the deposit amount divided by the current USYC price. [\\[2\\]](#cite-id-ADfB40QkWK) [\\[7\\]](#cite-id-edcCMIfdGpzVx1Ds) [\\[1\\]](#cite-id-77mtIAPzVt)\n\n## Redemption Workflow\n\n![](https://ipfs.everipedia.org/ipfs/QmYEdcKRGKPmJw33LZYDuCu1wo4sBgrHCtiLqnqxY6prTM)\n\nApproved wallets on the allowlist can redeem USYC by burning the tokens through the Smart Contract Teller in exchange for [USDC](https://iq.wiki/wiki/usdc). The fund administrator updates the registry to reflect the burned tokens, and [Circle](https://iq.wiki/wiki/circle) transfers [stablecoins](https://iq.wiki/wiki/stablecoin) to the client. [\\[2\\]](#cite-id-ADfB40QkWK) [\\[7\\]](#cite-id-edcCMIfdGpzVx1Ds)\n\n## Entitlements\n\nUSYC transactions are controlled through an entitlements system that assigns roles to wallets of verified entities, determining their ability to hold and transfer the token. [Smart contracts](https://iq.wiki/wiki/smart-contract) verify these permissions before processing transactions and also conduct OFAC sanctions checks using an on-chain [oracle](https://iq.wiki/wiki/oracle) maintained by [Chainalysis](https://iq.wiki/wiki/chainalysis). The entitlements contract can halt all transactions if suspicious activity is detected, preventing further transfers until the issue is resolved. [\\[2\\]](#cite-id-ADfB40QkWK)\n\n## Smart Contract Teller\n\nThe Smart Contract Teller enables on-chain transactions for subscribing to and redeeming USYC. Investors can [mint](https://iq.wiki/wiki/minting) USYC using [USDC](https://iq.wiki/wiki/usdc). Subscriptions and redemptions are available 24/7/365, settle in real-time (T+0), and are based on the latest reported price. Liquidity is managed through frequent asset rebalancing. [\\[2\\]](#cite-id-ADfB40QkWK) [\\[7\\]](#cite-id-edcCMIfdGpzVx1Ds)","summary":"USYC is a tokenized money market fund acquired by Circle in 2025. It represents shares in the Hashnote Short Duration Yield Fund and invests in U.S. government-backed securities.","images":[{"id":"QmY4jehvRvf8WpSB7n4k4qmXLpBw7KuBd4VfWdgbHDeNu3","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[],"media":[{"id":"QmfMtWFnz31Vo2tDZt8nw7s7oZLexdeKLpLjUKxHmN5nSq","size":null,"name":null,"type":"GALLERY","source":"IPFS_IMG"},{"id":"QmUGaqC76DmvsTBrSCeRUqxyrWZNjosvmJQCh9dQN7Shaq","size":null,"name":"usycSub.png","type":null,"source":"IPFS_IMG"},{"id":"QmYEdcKRGKPmJw33LZYDuCu1wo4sBgrHCtiLqnqxY6prTM","size":null,"name":"usycRed.png","type":null,"source":"IPFS_IMG"}],"metadata":[{"id":"website","value":"https://usyc.hashnote.com/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/hashnote-usyc"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/hashnote-usyc/"},{"id":"twitter_profile","value":"https://twitter.com/Hashnote_Labs"},{"id":"etherscan","value":"https://etherscan.io/token/0x136471a34f6ef19fe571effc1ca711fdb8e49f2b"},{"id":"contract_url","value":"https://ethplorer.io/address/0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b"},{"id":"references","value":"[{\"id\":\"77mtIAPzVt\",\"url\":\"https://usyc.docs.hashnote.com/\",\"description\":\"Official documentation\",\"timestamp\":1743796311622},{\"id\":\"ADfB40QkWK\",\"url\":\"https://usyc.docs.hashnote.com/overview/product-structuring\",\"description\":\"Product structuring documentation\",\"timestamp\":1743796311622},{\"id\":\"eWLvD1rUdr\",\"url\":\"https://usyc.docs.hashnote.com/overview/investor-onboarding#eligibility\",\"description\":\"Eligibility documentation\",\"timestamp\":1743796311622},{\"id\":\"aU9EupcDii\",\"url\":\"https://usyc.docs.hashnote.com/overview/investor-onboarding#high-level-process\",\"description\":\"Onboarding process documentation\",\"timestamp\":1743796311622},{\"id\":\"Blw03wMjZM\",\"description\":\"USYC | Hashnote\",\"timestamp\":1743796516495,\"url\":\"https://usyc.hashnote.com/\"},{\"id\":\"lJysufZBN5aRCNR1\",\"url\":\"https://www.circle.com/pressroom/circle-announces-acquisition-of-hashnote-and-usyc-tokenized-money-market-fund-alongside-strategic-partnership-with-global-trading-firm-drw\",\"description\":\"Circle Press Release on Hashnote Acquisition\",\"timestamp\":1773318594584},{\"id\":\"edcCMIfdGpzVx1Ds\",\"url\":\"https://developers.circle.com/tokenized/usyc/overview?\\\\_gl=1*roibom*\\\\_gcl\\\\_au*NzE1OTQxNDU1LjE3NzMzMTg0Mjk.*\\\\_ga*OTQxNTUzNy4xNzczMzE1MjE2*\\\\_ga\\\\_GJDVPCQNRV\\\\*czE3NzMzMTgyOTMkbzM5JGcxJHQxNzczMzE4MjkzJGoxMTYkbDAkaDA\",\"description\":\"USYC Eligibility and Regulation Details\",\"timestamp\":1773318594584},{\"id\":\"uHfpQeuyQgPkpBzz\",\"url\":\"https://thedefiant.io/news/defi/circle-acquires-hashnote-and-usyc\",\"description\":\"The Defiant article on Circle's acquisition of Hashnote\",\"timestamp\":1773318594584}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/Qme98sMAEoF82PujfK8sPcNBqDhdnembfwhVZgMThLhRbF\""},{"id":"commit-message","value":"\"Removed USYC introduction and overview\""},{"id":"previous_cid","value":"Qme98sMAEoF82PujfK8sPcNBqDhdnembfwhVZgMThLhRbF"}],"events":[{"date":"2023-05-01","title":"Inception Date","type":"CREATED","description":"USYC Inception Date","link":"https://www.circle.com/pt-br/usyc","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null,"id":"dd736a7e-ab30-4b5a-8d83-b9a8e36eca68"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8AF7a19a26d8FBC48dEfB35AEfb15Ec8c407f889"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum","canton-network","binance-smart-chain","base","near-protocol","solana"],"founders":["leo-mizuhara"],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"46072823-eda6-4644-8660-b9c4da371fd1\",\"title\":\"Hashnote USYC\",\"description\":\"USYC is a tokenized money market fund acquired by Circle in 2025. It represents shares in the Hashnote Short Duration Yield Fund and invests in U.S. government-backed securities.\",\"timestamp\":\"2026-03-12T12:45:25.287Z\",\"category\":\"Cryptocurrencies\",\"status\":{\"icon\":\"RiGlobalLine\",\"label\":\"Wiki Updated\",\"iconClassName\":\"text-green-500\"},\"user\":{\"name\":\"0x8AF7a19a26d8FBC48dEfB35AEfb15Ec8c407f889\",\"address\":\"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138\"},\"button\":{\"label\":\"View Summary\",\"icon\":\"RiFileTextLine\"},\"summarySections\":[{\"title\":\"Summary\",\"subtitle\":\"The summary was updated to reflect Circle's acquisition of the USYC fund in 2025.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Changed summary from focusing on Hashnote's fund to describing USYC as a money market fund acquired by Circle, investing in U.S. government-backed securities.\"]},{\"title\":\"Introduction\",\"subtitle\":\"The introductory paragraph was updated to include Circle's acquisition and clarify the investment strategy.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Updated the introduction to state that USYC is issued by Circle International Bermuda Limited following the acquisition of Hashnote in 2025, and clarified the investment strategy focuses on reverse repos. [[5]](#cite-id-Blw03wMjZM) [[6]](#cite-id-lJysufZBN5aRCNR1) [[1]](#cite-id-77mtIAPzVt)\"]},{\"title\":\"Overview\",\"subtitle\":\"The Overview section was rewritten to reflect the new ownership, regulations, and operational details under Circle.\",\"variant\":\"modified\",\"changeCount\":4,\"changes\":[\"Updated to clarify the fund is managed by an in-house Fixed Income team and earns yield from the short-term Fed rate. [[7]](#cite-id-edcCMIfdGpzVx1Ds) [[1]](#cite-id-77mtIAPzVt)\",\"Changed settlement from T+0/T+1 to 24/7/365 real-time (T+0) settlement in USDC.\",\"Added details on regulation by the Bermuda Monetary Authority (BMA) and specified that USYC is only available to eligible non-U.S. Persons. [[1]](#cite-id-77mtIAPzVt) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\",\"Modified security details to mention an externally-audited ERC-20 token contract. [[1]](#cite-id-77mtIAPzVt) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\"]},{\"title\":\"Acquisition by Circle\",\"subtitle\":\"A new section was added detailing Circle's acquisition of Hashnote.\",\"variant\":\"added\",\"changeCount\":2,\"changes\":[\"Added a new section describing the acquisition in January 2025 and noting USYC's market size. [[6]](#cite-id-lJysufZBN5aRCNR1) [[8]](#cite-id-uHfpQeuyQgPkpBzz)\",\"Included details about Circle's strategy for RWA market entry, a partnership with DRW, and plans to deploy native USDC on the Canton Network. [[6]](#cite-id-lJysufZBN5aRCNR1)\"]},{\"title\":\"Tokenomics\",\"subtitle\":\"A new 'Tokenomics' section was added to explain the token's mechanics.\",\"variant\":\"added\",\"changeCount\":2,\"changes\":[\"Added a section describing USYC as a permissioned ERC-20 token that accrues value based on the underlying fund's yield. [[1]](#cite-id-77mtIAPzVt)\",\"Included information on how the token price reflects the fund's NAV and the 24/7/365 mint/redeem process with USDC. [[1]](#cite-id-77mtIAPzVt)\"]},{\"title\":\"Investor Onboarding\",\"subtitle\":\"Investor eligibility was updated to exclude U.S. persons.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Updated investor eligibility to state that USYC is only available to non-U.S. Persons, removing previous mention of U.S. Qualified Eligible Participants. [[3]](#cite-id-eWLvD1rUdr) [[4]](#cite-id-aU9EupcDii) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\"]},{\"title\":\"Subscription Workflow\",\"subtitle\":\"The accepted currency for subscription was changed.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Updated the subscription process to specify that investors can subscribe using USDC, removing fiat (USD), USDT, and PYUSD as options. [[2]](#cite-id-ADfB40QkWK) [[7]](#cite-id-edcCMIfdGpzVx1Ds) [[1]](#cite-id-77mtIAPzVt)\"]},{\"title\":\"Redemption Workflow\",\"subtitle\":\"The redemption process and currency were updated.\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Updated the redemption process to specify that tokens are exchanged for USDC, removing fiat (USD), USDT, and PYUSD options. [[2]](#cite-id-ADfB40QkWK) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\",\"Changed the entity responsible for transferring funds from Hashnote to Circle. [[2]](#cite-id-ADfB40QkWK) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\"]},{\"title\":\"Entitlements\",\"subtitle\":\"A minor update was made to add a link.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Added a link to Chainalysis, which maintains the on-chain oracle for OFAC checks. [[2]](#cite-id-ADfB40QkWK)\"]},{\"title\":\"Smart Contract Teller\",\"subtitle\":\"The transaction availability and accepted currencies were updated.\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Updated availability for subscriptions and redemptions from market hours to 24/7/365 with real-time (T+0) settlement. [[2]](#cite-id-ADfB40QkWK) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\",\"Specified that minting is done using USDC, removing the PYUSD option. [[2]](#cite-id-ADfB40QkWK) [[7]](#cite-id-edcCMIfdGpzVx1Ds)\"]},{\"title\":\"Events\",\"subtitle\":\"An event was added to mark the inception date of USYC.\",\"variant\":\"added\",\"changeCount\":1,\"changes\":[\"Added 'Inception Date' event for May 1, 2023.\"]},{\"title\":\"Tags\",\"subtitle\":\"The 'Ethereum' tag was removed.\",\"variant\":\"removed\",\"changeCount\":1,\"changes\":[\"Removed tag: Ethereum\"]},{\"title\":\"Categories\",\"subtitle\":\"Categories were updated to remove 'hashnote' and add several blockchain networks.\",\"variant\":\"modified\",\"changeCount\":7,\"changes\":[\"Removed category: hashnote\",\"Added category: ethereum\",\"Added category: canton-network\",\"Added category: binance-smart-chain\",\"Added category: base\",\"Added category: near-protocol\",\"Added category: solana\"]},{\"title\":\"Speakers\",\"subtitle\":\"The 'Speakers' field was removed from the wiki.\",\"variant\":\"removed\",\"changeCount\":1,\"changes\":[\"The 'Speakers' field, which was empty, has been removed.\"]},{\"title\":\"References\",\"subtitle\":\"References were updated to include sources about the Circle acquisition and remove an old source.\",\"variant\":\"modified\",\"changeCount\":4,\"changes\":[\"Removed reference: 'Service providers documentation'\",\"Added reference: 'Circle Press Release on Hashnote Acquisition'\",\"Added reference: 'USYC Eligibility and Regulation Details'\",\"Added reference: 'The Defiant article on Circle's acquisition of Hashnote'\"]},{\"title\":\"Metadata\",\"subtitle\":\"A wiki score was added to the metadata.\",\"variant\":\"added\",\"changeCount\":1,\"changes\":[\"Added metadata field 'wiki-score' with value '86'.\"]}]}]}"}