Circle Internet Group, Inc. (NYSE: CRCL) has struck an exciting new partnership with Binance, the world’s leading digital asset exchange, setting the stage for the launch of the yield-bearing stablecoin, USYC, into Binance’s institutional trading platform. This collaboration is poised to reshape how institutional traders interact with the cryptocurrency landscape, enhancing capital efficiency and yield generation.
USYC is now supported as off-exchange collateral for @binance institutional clients, unlocking more capital efficient yield with tokenized U.S. Treasuries.✅ TMMF backed by U.S. Treasuries✅ Near-instant fungibility with USDCThis collaboration brings the power of tokenized… pic.twitter.com/YHBq0w7eUC— Circle (@circle) July 24, 2025
This important partnership opens the door for Binance’s institutional clients to utilize USYC— a tokenized money market fund (TMMF)—as off-exchange collateral when engaging in derivatives trading. Not only does this arrangement mirror familiar practices from traditional finance, but it also enables traders to tap into new yield opportunities while retaining essential capital flexibility.
The recent acquisition of USYC by Circle earlier this year adds a unique dimension to its offerings, as the token positions itself as a digital counterpart to short-term U.S. Treasuries. Unlike ordinary stablecoins such as USDC and Tether, which merely hold value, USYC redistributes yield directly back to its holders, making it an attractive option for investors looking for passive income. Custodial services for USYC will be managed through Binance Banking Triparty, alongside approved banks, or via Ceffu, Binance’s partner in high-grade institutional custody. The token itself will be natively issued on the BNB Chain, enhancing its accessibility and utility.
As the market for tokenized U.S. Treasury products heats up, Circle reports a significant surge in demand for these digital assets, which have practically doubled in size since early 2025. As institutional traders lean more toward digital assets that deliver stable value, reliable yield, and the is advantages of blockchain technology, USYC appears equipped to take center stage.
Pairing USYC with USDC could reshape capital flows for institutions. The two tokens are designed for seamless convertibility, allowing traders to quickly switch between the stability of tokenized cash and the yield-producing potential of assets. This could greatly enhance trading efficiency and flexibility within the increasingly digital financial ecosystem.
Leaders from both companies have emphasized a long-term vision underlying this powerful partnership. Kash Razzaghi, Circle’s Chief Business Officer, noted that the collaboration fosters more agile collateral strategies within digital asset markets. Meanwhile, Catherine Chen, Binance’s Head of VIP & Institutional, expressed the exchange’s commitment to equipping professional traders with trusted tools that enhance efficiency and reliability.
In a related note, a recent report by CertiK highlighted the current boom in the stablecoin market, revealing that the total supply has soared from $204 billion to a staggering $252 billion in just the first half of 2025. This explosive growth, however, comes with caution, as it exposes disparities in security practices and regulatory maturity within the sector.
Despite the recent downturn, where Circle’s stock (NYSE: CRCL) plummeted by over 10% to close at $202.41 on July 24, the company remains a heavyweight in the marketplace, boasting a robust market cap of $45.04 billion. The decline in stock price from its peak of $225.67 may reflect broader market anxieties or doubts regarding Circle’s ongoing developments, including the strategic integration of USYC with Binance.
Circle’s stock performance illustrates the volatility in the market.
Looking ahead, the integration of USYC within Binance could signal new opportunities for both companies and their clients. As institutions become increasingly interested in tokenized assets, this partnership could serve as a catalyst for innovation in the cryptocurrency trading landscape. How will this shift impact the broader financial ecosystem? Only time will unveil the full potential of this collaboration.
Engage with us to stay updated on the latest trends in cryptocurrency. What are your thoughts on this groundbreaking partnership? Share your insights in the comments below!