Circle USYC

usyc
Rank #29•Tokenized Assets, BNB Chain Ecosystem, Solana Ecosystem
CoinYQ Dossier

Circle bought Hashnote; USYC remained a moving-price Cayman fund share

USYC's corporate parent changed in 2025, but the holder's instrument did not become a Circle dollar. It remains a permissioned share of SDYF, priced from fund NAV and redeemable through liquidity that can run out of its instant lane.

Hashnote joined a fund register to an onchain token

SDYF's inception date is 1 May 2023. Hashnote built USYC so a transfer agent would keep the legal share register while a permissioned token mirrored each share onchain. That pairing let an eligible institution move an interest in a short-duration fund as collateral without pretending the token itself was a bank deposit.

The portfolio earns through short-term Treasury bills and reverse repos backed by U.S. government securities. Income accumulates in NAV, so the number of USYC need not grow; its reported price does. That is why a USDC subscription does not make USYC a one-dollar stablecoin.

The acquisition changed the operator, not the fund boundary

Circle announced its Hashnote acquisition on 21 January 2025. A later SEC filing says Circle bought 100% of Hashnote Holdings and affiliates, and identifies a Hashnote subsidiary as SDYF's investment manager. CIBL, licensed in Bermuda, now issues and administers USYC for the Cayman fund.

The same filing draws a line through the new corporate story: SDYF is not consolidated into Circle, Circle's equity interest is insignificant, and Circle provides no guarantees or other financial commitments. A USYC holder therefore follows the fund-share terms and register; the Circle name does not create recourse to Circle's full balance sheet.

The token price waits for yesterday's books

The oracle normally updates once on each business day after the prime broker's previous-day activity, subscriptions, redemptions and accrued interest are reconciled. Its formula is prime-brokerage NAV divided by outstanding USYC. A subscription after 2:00 p.m. ET uses a forecast next price, while a redemption uses the latest reported price; an operational delay can leave the onchain figure waiting longer.

Redemption speed has another clock. Available public Teller liquidity can pay in one block, but Circle puts requests above that capacity at T+0 or T+1. A client that needs guaranteed larger same-day liquidity must arrange a private route and may pay an additional fee. '24/7' describes when the workflow can be submitted, not an unconditional promise that every amount settles immediately.

Permissioned liquidity comes with permissioned control

Circle’s product page currently lists BNB, Canton, Ethereum, NEAR and Solana, while its technical registry publishes integration addresses for Ethereum, BNB Chain and Solana. Ethereum's token, Teller and Entitlements are upgradeable proxies. Verified code allows authorized operators to change mint allowances, the price oracle, treasury, fee machinery and per-account limits; the Entitlements owner controls roles, unpausing and upgrades.

Every token transfer asks Entitlements whether the wallets may act. Pausing that authority makes the permission checks revert, and the product documentation says suspicious activity can lead to a system-wide halt. These controls support regulated distribution, but they also mean a holder cannot exit onchain merely by possessing the private key when permission or Teller liquidity is unavailable.

How the project changed

  1. 2023-05-01
    SDYF begins

    Circle lists this as the fund inception date behind the first USYC structure.

  2. 2025-01-21
    Circle announces the Hashnote acquisition

    The fund token moved under a new corporate owner while its Cayman fund-share form remained.

  3. 2025-02-13
    Bermuda clears the issuer transition

    Circle reported BMA no-objection before CIBL began issuing USYC from Bermuda.

  4. 2025-10-01
    USYC opens on Solana

    Circle added an SPL-22 deployment for eligible non-U.S. institutions.

  5. 2025-11-19
    BNB Chain access goes live

    A BNB cross-chain Teller began routing subscription and redemption to native Ethereum USYC.

Evidence and primary sources

Last evidence review: 2026-09-05

What is Circle USYC?

Circle USYC is the digital twin of one share in Hashnote International Short Duration Yield Fund Ltd. (SDYF), a Cayman Islands mutual fund. Circle International Bermuda Limited (CIBL) issues and administers the token for the fund. The transfer agent's shareholder register remains the legal record; the token mirrors that record on supported chains.

SDYF invests mainly through reverse-repurchase agreements backed by U.S. government securities and in short-term Treasury bills. Earnings increase the per-share NAV and therefore USYC's token price. A holder does not receive a rebasing balance or staking distribution, and USYC is not a promise to return exactly one dollar.

What problem does Circle USYC solve?

Hashnote designed USYC for institutions that wanted short-duration dollar yield to remain usable as collateral outside banking hours. The design joined two ledgers: a Cayman fund share register for legal ownership and permissioned tokens for transfer, subscription and redemption.

Circle's January 2025 acquisition changed who owned the fund manager and token business. It did not turn SDYF into a Circle-guaranteed reserve. Circle's 2025 Form 10-K describes SDYF as an unconsolidated variable-interest entity, says Circle held only an insignificant equity interest and provided no guarantees or other financial commitments. That boundary matters more than the brand change.

How does Circle USYC work?

An eligible non-U.S. institution completes KYC/AML and wallet screening, then sends USDC through the Teller. USDC moves toward the prime-brokerage account, the transfer agent records fund shares, and CIBL mints the matching USYC amount at the effective subscription price. The oracle normally reports NAV per outstanding token once each business day after reconciliation. After 2:00 p.m. ET, subscription uses a forecast of the next reported price; redemption uses the latest reported price.

An allowlisted holder burns USYC to receive USDC. Circle says amounts within public instant capacity can settle in one block, while amounts above it take T+0 or T+1; guaranteed larger same-day liquidity requires arrangement through support and can carry another fee. Standard published fees are 0.04% for subscription, 0.03% for redemption and 10% of yield as a performance fee, with a specified first-$1-million daily waiver for eligible Ethereum and Solana wallets.

Circle’s current product page lists BNB, Canton, Ethereum, NEAR and Solana availability; its technical registry gives integration contracts for Ethereum, BNB Chain and Solana. On Ethereum, the token, Teller and Entitlements modules are upgradeable proxies. Verified code lets authorized roles adjust minter allowance, Teller oracle, treasury, fee manager and account limits. The Entitlements owner can alter roles, unpause and upgrade, while an authorized role can pause the permission system; pausing makes permission checks fail and stops token movement. These are operating controls, not votes granted to USYC holders.

Key facts

  • USYC represents SDYF shares; the transfer agent's share register is the legal ledger and the onchain token is its digital twin.
  • CIBL is the current token issuer and administrator; SDYF is a CIMA-registered Cayman mutual fund.
  • Circle announced the Hashnote acquisition on 21 January 2025; its 2025 Form 10-K says it acquired 100% of Hashnote Holdings and affiliates.
  • The same filing treats SDYF as unconsolidated, records only an insignificant Circle equity interest and says Circle provides no guarantee or financial commitment to the fund.
  • Access is limited to eligible institutions outside the United States, with KYC/AML, wallet allowlisting and a US$100,000 minimum.
  • NAV per token is calculated from the prime-brokerage account NAV divided by outstanding USYC supply and is normally reported once per business day.
  • Yield appears through a rising token price; USYC neither rebases nor pays a staking reward.
  • Published standard charges are 0.04% subscription, 0.03% redemption and 10% of yield; after-hours and private-liquidity terms can add or change the effective cost.
  • Public instant redemption is capacity-dependent; above capacity Circle states T+0 or T+1, and larger guaranteed same-day liquidity requires separate coordination.
  • Circle’s product page currently lists BNB, Canton, Ethereum, NEAR and Solana. Its narrower technical registry publishes Ethereum, BNB Chain and Solana contracts, with BNB subscription and redemption routed through a cross-chain Teller to native Ethereum USYC.
  • Ethereum's token, Teller and Entitlements are upgradeable and role-controlled; the Entitlements contract was unpaused at the 5 September 2026 RPC snapshot.
  • Public materials do not expose the complete offering memorandum, current audited holdings schedule, instant-liquidity capacity or full voting and liquidation terms.

Official links

Official websiteBlock explorerX / Twitter

Categories

Tokenized AssetsBNB Chain EcosystemSolana EcosystemEthereum EcosystemReal World Assets (RWA)Tokenized Treasuries

Related coins

Figure Heloc#9Tether Gold#33PAX Gold#41Ondo US Dollar Yield#43Spiko Amundi Overnight Swap Fund (EUR)#62Blockchain Capital#66

Frequently asked questions

Is one USYC redeemable for exactly one dollar?

No. USYC represents one SDYF share and redeems in USDC at the reported fund price, which changes with NAV.

Did Circle acquire the underlying fund assets?

Circle acquired Hashnote Holdings and affiliates. Its 2025 Form 10-K says SDYF itself is unconsolidated, Circle holds only an insignificant equity interest in it and provides no guarantee or other financial commitment.

Who may subscribe?

Official onboarding limits access to eligible institutions outside the United States. They must pass KYC/AML and wallet screening and meet a US$100,000 minimum.

How is yield delivered?

Income from the fund portfolio raises NAV and the USYC price. The holder does not receive extra tokens or a staking payout.

Is redemption always instant?

No. Circle describes one-block settlement only within available instant capacity. Larger public requests take T+0 or T+1; guaranteed larger same-day liquidity needs separate arrangement and may cost more.

Can the system’s operators stop transfers?

Yes. Every transfer depends on the Entitlements permission check. Authorized roles can pause the system or change permissions, and suspicious or sanctioned wallets can be prevented from transacting. Public chain data does not identify the controlling people or signer policy.

What does a USYC holder legally own?

Public documents describe a fund share recorded by the transfer agent and mirrored by the token. They do not establish a fixed-dollar claim against Circle, deposit insurance or ownership of a particular Treasury bill.

Are the portfolio and investor rights fully public?

No. Circle explains the strategy, pricing and summarized fund figures, but the complete offering memorandum, a current audited holdings schedule and detailed voting or liquidation provisions were not publicly available in this review.

External trackers

Choose a tracking site for Circle USYC:

Track price on CoinGeckoTrack price on CoinMarketCapTrack price on Binance