Circle plans to bring $900M money market fund under DABA license

Circle, the creator of stablecoin USDC (USDC), announced connected March 13 plans to bring its Hashnote Tokenized Money Market Fund (TMMF) under Bermuda regulatory oversight done the company’s existing Digital Assets Business Act (DABA) license.

Hashnote, which Circle acquired successful January 2025, is the issuer of USDY, the largest tokenized treasury and wealth marketplace money with a full worth locked (TVL) of $900 million, according to DefiLlama. The fund’s TVL has fallen from $1.9 cardinal arsenic of Jan. 7.

Hashnote USYC TVL implicit time. Source: DefiLlama

Related: Wall Street is betting connected $30T RWA tokenization marketplace prospects

According to the announcement, Circle intends to afloat integrate USDY with USDC, which would let for entree betwixt the TMMF and the stablecoin. The institution believes that this volition marque USDY “the preferred form” of yield-bearing collateral connected crypto exchanges, including for custodians and brokers.

According to Freeman Law, Bermuda enacted 1 of the archetypal ineligible and regulatory frameworks for governing integer assets. Circle was the archetypal steadfast successful crypto to person a licence nether the Bermuda Monetary Authority successful September 2021. Bermuda’s Digital Assets Business Act presently permits 3 types of licenses for companies conducting concern nether the Act.

Tokenized RWAs a “$30-trillion opportunity”

In August 2024, Colin Butler, Polygon’s caput of organization capital, said that tokenized real-world assets (RWAs) are a $30-trillion marketplace accidental globally. He believed that the propulsion would apt travel from high-net-worth individuals who volition allocate wealth to alternate assets arsenic tokenization creates liquidity successful antecedently illiquid markets.

Also, successful August 2024, it was predicted that tokenized US Treasurys would surpass a $3 cardinal marketplace capitalization by the extremity of 2024. According to RWA.xyz, the tokenized US Treasurys marketplace headdress sits astatine $4.2 billion astatine the clip of this writing. Hashnote is the No. 2 protocol for tokenized US Treasurys, according to the platform, though its marketplace headdress has fallen 21% successful the past 30 days.

Related: Infrastructure for legally viable RWA tokenization: AMA recap with Mantra

The wide marketplace headdress for RWAs surpassed $15.2 cardinal astatine the extremity of 2024, driven mostly by organization players who piloted tokenization projects related to a big of real-world goods, including existent estate, gold, diamonds and c credits. The marketplace headdress initially reclaimed an all-time precocious of $17.1 billion connected Feb. 3 but has since gone adjacent further, rising to $18.1 cardinal astatine the clip of this writing.

Tokenization is changing antithetic areas of finance, including creating liquidity for illiquid assets and leveraging the blockchain to facilitate transparent and businesslike transactions. It isn’t constricted to a azygous benignant of asset, which gives the exertion broader usage cases.

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