Circle Internet Group Expands Its Footprint in Bermuda by Acquiring Hashnote's USYC Tokenized Money Market Fund

Circle Internet Group is increasing its footprint in Bermuda through the addition of Hashnote Tokenized Money Market Fund under its licensed Digital Assets Business Act (DABA).

Circle Internet Group is expanding its footprint in Bermuda with the addition of Hashnote’s Tokenized Money Market Fund, approved under Bermuda’s Digital Assets Business Act (DABA).

The acquisition, announced via a press release on Tuesday, will see Circle integrate USYC, a tokenized money market fund, into its operations. Hashnote is the issuer of USYC, which had $990 million in assets under management as of March 6.

Unlike traditional money market funds, USYC is a digital asset, announced in November 2024, and is defined and protected by Bermuda’s legal framework. The fund’s shares are also capable of being traded.

Hashnote’s tokenized money market fund will be included in Circle’s DABA license. The move is part of Circle’s broader strategy to expand its tokenized financial services in the region.

“We are pleased to welcome Hashnote’s U.S.YC to Circle’s DABA license in Bermuda,” said Jeremy Allaire, CEO of Circle. “Hashnote has done an excellent job in launching and growing U.S.YC, which is a critical addition to the tokenized financial services ecosystem.”

Allaire added that they plan to closely connect USYC with Circle’s USDC stablecoin, enabling seamless liquidity and capital to flow between the two. This is expected to drive up the use of digital currency and increase its liquidity in the markets.

With this expansion, Circle establishes USYC as a valuable collateral asset for crypto exchanges, custodians, and institutional financial firms. The underlying assets are used to loan and sell in order to maximize the security that backs various monetary undertakings.

The Hon. E. David Burt, JP, MP, Premier of Bermuda, noted: “Circle’s continued commitment to Bermuda demonstrates our successful approach to providing regulatory clarity for innovative financial services. Digital financial products like USYC and USDC are strengthening Bermuda’s digital connectivity and our leadership in international business markets.”

Since launching its operations in 2021, Circle has been operating in Bermuda under the regulation of the Bermuda Monetary Authority (BMA). The stablecoin issuer is reportedly the first crypto company to get a full license from the BMA.

Earlier this year, the BMA announced that it had granted a full banking license to Circle, permitting the company to provide a range of banking services, including deposits, lending, and payments.

Premier Burt added: “This move by Circle to expand its operations and integrate Hashnote’s U.S.YC marks a significant step forward for Bermuda’s digital asset industry. We are committed to providing a supportive and innovative regulatory environment that encourages the development of new financial technologies.”

Hashnote is a leading innovator in the tokenized financial products space. The company’s tokenized money market fund is a unique and valuable addition to the institutional investor landscape.

This development comes amid growing interest in tokenized financial products. As the world becomes increasingly digital, there is a clear demand for investment vehicles that operate within the tokenized economy.