Circle Expands $635M Tokenized Treasury Fund to Solana Amid Rapid RWA Growth
Circle (CRCL), the crypto firm identified for its USDC stablecoin, launched on Wednesday its tokenized U.S. Treasury fund providing to Solana, increasing its footprint to the blockchain identified for low-cost transactions and quick settlement instances.
The transfer expands the USYC token past Ethereum, Close to, Base and Canton networks and the deliberate addition of BNB Chain.
USYC is a tokenized model of a short-duration U.S. authorities cash market fund. The fund is redeemable in actual time into USDC, Circle’s dollar-backed stablecoin, and is out there solely to non-U.S. institutional buyers who go know-your-customer (KYC) checks. That makes USYC permissioned by design, in distinction to different tokens generally utilized in decentralized finance (DeFi).
The broader tokenized treasury market has seen explosive development just lately, swelling to almost $8 billion in the present day from $2.4 billion in a 12 months, RWA.xyz information reveals. That enhance displays the rising institutional urge for food for real-world belongings (RWAs) on blockchain rails, significantly yield-bearing authorities securities. They’re more and more used as collateral for lending and margin buying and selling, or as a constructing block for different yield-generating methods.
With a market cap of $635 million, USYC is the fifth-largest tokenized treasury fund, based on information from RWA.xyz.
Solana’s integration provides new potential use instances, together with utilizing USYC as margin collateral for derivatives buying and selling or as a yield-bearing asset in Solana-based decentralized finance (DeFi) platforms. Nevertheless, USYC requires protocols to combine eligibility checks and pockets allow-listing, a hurdle that many functions will want additional improvement to assist it.
Learn extra: Republic to Tokenize Animoca Manufacturers Fairness on Solana to Broaden Investor Entry
