Circle acquires Hashnote in $1.3B deal to lead tokenized treasury market

• Circle’s $1.3B Hashnote acquisition integrates USDC with tokenized RWAs, merging stablecoins with yield-bearing blockchain assets.
• The $1.3B USYC token drives growth in tokenized U.S. Treasuries, positioning Circle as a leader in the expanding RWA market.
• Circle’s strategic push into tokenization heats competition with Tether as RWAs reshape institutional adoption in crypto.

Circle, the issuer of USDC, has acquired Hashnote, a company specializing in tokenized real-world assets (RWAs), in a $1.3 billion deal. This acquisition signals Circle’s move into the rapidly growing RWA market, which has become a trend in the crypto industry. Circle plans to integrate Hashnote’s USYC token with its stablecoin USDC, enabling seamless convertibility between cash and yield-bearing collateral on blockchain networks.

The Growing Tokenized RWA Market

Tokenized RWAs, such as U.S. Treasury bills and money market funds, have become increasingly popular among institutional investors. They offer advantages over traditional assets. Blockchain technology provides transparency, accessibility, and 24/7 settlements, which attract more sophisticated investors. Furthermore, these tokenized assets enable participants to earn yield while using them as collateral, enhancing returns compared to fiat-backed collateral.

Hashnote’s $1.3 billion USYC token has seen massive growth, emerging as the largest tokenized U.S. Treasury product in the market. According to data from rwa.xyz, the token’s rapid expansion highlights the increasing demand for tokenized Treasury-backed assets. Circle’s CEO, Jeremy Allaire, emphasized that the acquisition is a pivotal step in aligning traditional finance (TradFi) with blockchain technology. It strengthens the synergies between stablecoins and tokenization, positioning Circle as a leader in both sectors.

Competitive Landscape and Future Prospects

The tokenization of RWAs is gaining momentum, with Circle’s main competitor, Tether, also entering the market. Consequently, the competition between Circle and Tether is intensifying. Tether launched its tokenization platform last year, signaling its commitment to this emerging market. However, Circle’s expansion into this space via the Hashnote acquisition places it in a strong position to leverage the growing interest in tokenized assets.

Moreover, Circle’s plans to deploy USDC on the Canton Network further underscore its commitment to tokenization. The Canton Network is designed for financial institutions handling RWA transactions, ensuring liquidity and seamless transitions between decentralized and traditional financial markets. Circle’s recent growth, with a 78% year-over-year increase in USDC circulation, solidifies its dominance in the stablecoin market.