Circle’s USYC joins Binance as tokenised treasuries boom

Circle’s yield-bearing stablecoin USYC is now accepted as collateral on Binance, signalling a new shift in crypto market infrastructure.

The move marks the first time a major exchange has enabled institutional users to earn passive returns on margin assets.

Binance’s decision comes as tokenised real-world assets, especially short-term Treasuries, gain traction as a capital-efficient alternative to traditional stablecoins.

With tokenised Treasury products reaching $1.7 billion in 2025, the integration of USYC could mark the beginning of a broader institutional adoption wave in the crypto collateral space.

Tokenised Treasuries gain Binance exposure

Binance, the world’s largest crypto exchange by trading volume, has added Circle’s USYC as eligible collateral for institutional derivatives trading, as announced on July 24.

The move lets clients deploy USYC while earning yield—without sacrificing access to capital.

This is a first-of-its-kind arrangement among major exchanges, enabled via Binance’s triparty banking partners and its custody arm Ceffu.

Unlike traditional stablecoins, USYC provides exposure to short-duration US Treasuries and represents a digital share in the Hashnote International Short Duration Fund Ltd.

The stablecoin is yield-bearing and is structured to offer performance similar to money market funds.

What makes it appealing for institutional adoption is its near-instant conversion to USDC, offering liquidity when required.

Why Binance chose USYC now

The decision aligns with a broader industry trend: institutions are increasingly viewing tokenised Treasuries as a viable cash management tool.

According to the Financial Times, the value of tokenised Treasury products has surged to $1.7 billion in 2025.

Binance’s adoption of USYC follows earlier moves by competitors such as BlackRock (via its BUIDL fund) and Ondo Finance’s USDY, both of which offer similar products.

With USYC now deployed as a collateral option, Binance is responding to growing demand for yield-generating instruments that can still serve core trading needs.

The structure allows capital to remain productive even when locked as margin, offering a dual benefit of performance and utility.

Native issuance on BNB Chain boosts speed

In a technical milestone, USYC will be natively issued on the BNB Chain.

This design choice allows for faster settlements, reduced bridging risk, and deeper integration within Binance’s trading ecosystem.

For high-frequency traders, arbitrageurs, and liquidity providers operating across spot and derivatives markets, native issuance reduces friction and improves capital efficiency.

The move also reflects Binance’s broader ambition to reposition the BNB Chain as more than a DeFi retail platform.

With native USYC integration, the chain could evolve into a hub for institutional-grade real-world assets (RWAs), helping attract new capital and legitimising tokenised finance.

Institutional finance meets decentralised rails

The launch of USYC on Binance effectively bridges the gap between traditional finance and crypto.

With Circle enabling near-instant conversion from USYC to USDC, and Binance allowing that capital to be deployed across trading pairs, derivatives, and DeFi strategies, the move could help redefine crypto collateral standards.

As yield-bearing stablecoins become more attractive than their non-yielding counterparts, exchanges may be forced to adapt or risk losing institutional flows.

USYC, which sits at the intersection of regulatory-compliant yield products and blockchain-native liquidity, could serve as a blueprint for other stablecoins aiming to enter the RWA space.