Binance Now Accepts Circle’s Yield-Bearing USYC Token for Institutional Collateral

Binance has integrated Circle’s USYC token into its platform, allowing institutional clients to use this tokenized money market fund as off-exchange collateral in derivatives trading.

This collaboration aims to meet growing institutional demand for tokenized Real-World Assets and improve capital efficiency by enabling near-instant conversion of USYC into USDC stablecoin.

Tokenized Money Market Fund and Collateral Use

USYC is a tokenized money market fund backed primarily by short-term U.S. Treasury bills. It offers continuous yield and high liquidity, addressing a key challenge for institutions: balancing yield generation with operational flexibility.

Through blockchain tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term, USYC allows real-time transfers and near-instant redemption into USDC, facilitating seamless movement between tokenized cash and Treasury assets.

“USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency,” commented Kash Razzaghi, the Chief Business Officer at Circle. “It's near-instant redemption into USDC makes it an obvious fit for modern collateral use in digital markets.”

The integration allows Binance’s institutional customers to hold USYC off-exchange, with custody support provided through Binance Banking Triparty or Ceffu.

Issued natively on the BNB Chain, USYC users gain easier access to on-chain opportunities tied to traditional assets. This move aligns with recent market trends, as demand for tokenized Treasury interests has nearly doubled since the start of 2025.

The Broader Context and Future Outlook

Tokenized money market funds like USYC are gaining traction as alternatives to stablecoins in institutional finance. They offer yield while maintaining compatibility with traditional regulatory frameworks.

Blockchain's automation improves settlement speed and risk management compared to legacy systems. Circle’s collaboration with Binance marks a milestone in adopting tokenized Real-World Assets, signaling broader changes ahead in digital capital markets.

Circle Inc., a Boston-based fintech company, made headlines last month with its high-profile stock market debut, becoming the first stablecoin issuer to go public. The IPO marked a notable moment for the digital asset sector, providing a test case for how crypto-linked payment and traditional equity markets receive infrastructure companies.

Related: Circle Moves to Become a US National Trust Bank after Bumper IPO

The firm’s flagship product, USD Coin (USDC), is currently the world’s second-largest stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term, with $61 billion in circulation, trailing only Tether.

In addition, Circle recently applied to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank in the U.S. The move aims to place its stablecoin reserves under federal oversight, reflecting the company’s positioning as regulatory frameworks for stablecoins continue to evolve in the U.S.