Stablecoin issuer Circle on Wednesday expanded the availability of its tokenized money market fund USYC to the Solana blockchain. The company said the token represents short-term US government TMMF stock.
USYC can be redeemed in real-time for USDC, Circle’s dollar-backed stablecoin. The token is currently only available to non-US institutional investors who have passed know-your-customer (KYC) checks.
Circle aims to expand USYC beyond other blockchains
USYC is now available on @solana.
USYC is a tokenized money market fund that earns yield through token price appreciation and redeems on-chain to and from USDC.
Daily pricing. SPL native integration. Oracle-driven updates.
Collateral for many venues is static. Yield cannot be captured… pic.twitter.com/ZKGXaRVRQZ
— Circle (@circle) October 1, 2025
USYC is permissive by design compared to other digital assets commonly used in decentralized finance (DeFi). This initiative aims to expand USYC beyond Ethereum, the BNB chain, and the planned addition of near and cantonal networks.
circle recognized The company said it selected Solana for its design features designed to deliver low-latency transaction confirmations and high throughput. The company also noted that tokens on Solana are configured through the Solana Program Library (SPL), which allows for deterministic payments and fine-grained control at the account level.
Circle has confirmed that Solana participants will be able to incorporate USYC as a tokenized money market fund (TMMF) for lending. The company said USYC in the lending market will allow the token to act as yield-bearing collateral, allowing suppliers to earn underlying yield for the fund while providing liquidity. USYC also allows borrowers to realize lower net interest costs because the pledged collateral continues to generate yield.
Solana participants can: use USYC is used as margin collateral for perpetual DEX derivatives and continues to accrue yield during trading activities. USYC can also be deployed as a base asset within an automated yield vault, which layers programmatic strategies on top of the fund’s daily price updates, Circle said.
Circle also warned that developers may need to earn certification before joining USYC. The company said it has confirmed that participants can implement token and custody flows using the SPL Token-2022 program, and that only eligible wallets can make deposits and withdrawals.
Participants can also block ineligible transfers in program logic once the program manages storage. Solana participants can iterate USYC’s per-share price feed and use it to drive interest accrual, risk parameters, and liquidation logic.
Circle claimed that since the USYC function is programmable and accrual occurs through the token price, there is revenue accrual collateral and eliminates the need for separate reward claims. The company explained that near real-time redemption and supply to USDC will support the token’s operational liquidity and simplify collateral rebalancing.
Circle acquires USYC publisher Hashnote
Formerly Cryppolitan reported The Circle acquired USYC publisher Hashnote in January. The company said the integration of USYC and USDC will allow tokenized funds to emerge as the preferred form of high-yield collateral in the cryptocurrency sector.
“The integration of USYC and Hashnote into the Circle platform marks a key moment in the evolution of the stablecoin market, as cash and yield-bearing Treasury bill assets become fungible and exchangeable at the speed of blockchain and crypto capital markets.”
～ Jeremy AllaireCircle CEO and Chairman
Allaire also said that Circle invented cash and is now leading the tokenized money market sector, which he believes will be essential to the future of the global financial system. Hashnote CEO Leo Mizuhara explained that the effort to join Circle will strengthen the company’s ability to quickly scale adoption by combining USDC and USYC.
According to RWA.xyz data, USYC ranks 5th among tokenized financial products with a market capitalization of $634 million. The data also shows that the broader tokenized government bond market has grown to $8 billion, driven by institutional demand for high-yield digital assets backed by real-world securities.
JPMorgan analysts also attribute this strong growth to high-yielding stablecoins. Contains Tokenized money market funds (MMFs) and Treasury bill products. JPMorgan managing director Nikolaos Panigirtzoglou believes tokenized government debt products could grow to account for half of the stablecoin market. He also believes that in situations where stablecoins cannot directly provide yield, tokenized MMFs are likely to take the lead.