Binance integrates Circle’s USYC for institutional derivatives collateral

Published 24/07/2025, 13:36
Binance integrates Circle’s USYC for institutional derivatives collateral

NEW YORK/SINGAPORE - Circle Internet Group, Inc. (NYSE:CRCL), a $46 billion market cap fintech company with impressive 143% growth over the past six months, has partnered with Binance to allow the cryptocurrency exchange’s institutional clients to use Circle’s USYC tokens as off-exchange collateral for derivatives trading. According to InvestingPro data, Circle maintains a strong financial health score, positioning it well for this strategic expansion.

The collaboration, announced Thursday, enables Binance’s institutional customers to hold USYC—a tokenized money market fund representing interests in U.S. Treasuries—and use it as collateral through Binance Banking Triparty or Ceffu, Binance’s institutional custody partner. With annual revenue approaching $1.9 billion and strong cash flows, Circle demonstrates robust operational capabilities for this initiative.

USYC will also be natively issued on BNB Chain, potentially expanding its utility across blockchain applications. The token offers near-instant fungibility with USDC stablecoin, allowing users to move between tokenized cash and Treasuries with minimal delay.

The partnership comes as market demand for tokenized interests in U.S. Treasuries has nearly doubled since early 2025, according to the company’s press release statement.

"USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency," said Kash Razzaghi, Chief Business Officer at Circle.

Catherine Chen, Head of Binance VIP & Institutional, described the integration as "a major step forward in our support for the future of capital markets."

USYC tokens represent shares in the Hashnote International Short Duration Fund Ltd., a Cayman Islands registered mutual fund. Circle International Bermuda Limited serves as the token administrator.

The tokens are only available to non-U.S. persons as defined under the Securities Act of 1933, with additional eligibility restrictions potentially applying.

In other recent news, Circle Internet Group has been in the spotlight due to several significant developments. The company’s stock rating was downgraded by Compass Point from Neutral to Sell, with a reduced price target of $130.00, following the passage of U.S. stablecoin legislation. This legislation, approved by the U.S. House of Representatives, aims to create a regulatory framework for cryptocurrencies, expanding the Commodity Futures Trading Commission’s oversight. In a move to strengthen its position, Circle has applied to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank, First National Digital Currency Bank, N.A., which would manage the USDC Reserve and provide digital asset custody services. Meanwhile, competitor Ripple has applied for a federal banking license, intensifying the competitive landscape for regulated stablecoin issuers. Additionally, Citi has initiated coverage of Circle Internet Group with a Buy rating and a price target of $243.00, citing the company’s potential to lead in stablecoin adoption. These developments reflect the rapidly evolving regulatory and competitive environment in the cryptocurrency sector.

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