Circle Acquires Hashnote to Enhance USDC and Tokenization Efforts
Circle, the issuer of the $48 billion USDC stablecoin, has acquired Hashnote, a tokenized real-world asset (RWA) issuer. The deal was announced during the World Economic Forum in Davos, Switzerland, but financial terms were not disclosed.
Key points of the acquisition include:
- Integration of USYC, Hashnote’s $1.3 billion token, with USDC to facilitate convertibility between cash and yield-bearing collateral.
- Hashnote's USYC saw significant growth last year, becoming the largest tokenized U.S. Treasury product.
- Circle aims to enhance market transparency and speed, aligning traditional finance with blockchain markets.
Circle's CEO highlighted the potential for institutional adoption in this evolving market. The company previously announced plans for a public offering expected later this year.
Market Context
The acquisition reflects trends in stablecoins and tokenization:
- Stablecoins represent a $200 billion asset class crucial for bridging fiat and digital assets.
- Tokenized RWAs are gaining popularity among investors for trading collateral due to enhanced transparency and liquidity compared to traditional methods.
- Circle partnered with Cumberland to improve liquidity and settlement for USDC and USYC on exchanges.
- Plans to deploy USDC on the Canton Network for real-time liquidity between cash and collateral have been set.