Circle, the creator of stablecoin USDC (USDC), announced on March 13 plans to bring its Hashnote Tokenized Money Market Fund (TMMF) under Bermuda regulatory oversight by the corporate’s present Digital Assets Business Act (DABA) license.
Hashnote, which Circle acquired in January 2025, is the issuer of USDY, the biggest tokenized treasury and money market fund with a complete worth locked (TVL) of $900 million, according to DefiLlama. The fund’s TVL has fallen from $1.9 billion as of Jan. 7.
Hashnote USYC TVL over time. Source: DefiLlama
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According to the announcement, Circle intends to absolutely combine USDY with USDC, which might permit for entry between the TMMF and the stablecoin. The firm believes that this can make USDY “the popular type” of yield-bearing collateral on crypto exchanges, together with for custodians and brokers.
According to Freeman Law, Bermuda enacted one of many first authorized and regulatory frameworks for governing digital belongings. Circle was the primary agency in crypto to obtain a license under the Bermuda Monetary Authority in September 2021. Bermuda’s Digital Assets Business Act presently permits three kinds of licenses for corporations conducting enterprise under the Act.
Tokenized RWAs a “$30-trillion alternative”
In August 2024, Colin Butler, Polygon’s head of institutional capital, stated that tokenized real-world belongings (RWAs) are a $30-trillion market opportunity globally. He believed that the push would doubtless come from high-net-worth people who will allocate money to different belongings as tokenization creates liquidity in beforehand illiquid markets.
Also, in August 2024, it was predicted that tokenized US Treasurys would surpass a $3 billion market capitalization by the tip of 2024. According 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 accordance to the platform, though its market cap has fallen 21% up to now 30 days.
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The total market cap for RWAs surpassed $15.2 billion at the end of 2024, pushed largely by institutional gamers who piloted tokenization tasks associated to a bunch of real-world items, together with actual property, gold, diamonds and carbon credit. The market cap initially reclaimed an all-time high 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 changing different areas of finance, together with creating liquidity for illiquid belongings and leveraging the blockchain to facilitate clear and environment friendly transactions. It isn’t limited to a single type of asset, which provides the know-how broader use instances.
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