Real-World Assets · Review
ActiveCircle USYC Review 2026: Tokenized Treasury Money Fund
Circle USYC is a tokenized money market fund that holds short-term US Treasuries and reverse repo, with yield reflected in the token price and redemption to USDC. It targets institutions and eligible non-US users, not retail DeFi yield hunters.
By the DappsAtlas editorial team · Updated
DappsAtlas score
7.3/10
Good
Our verdict on Circle USYC
7.3/10Circle USYC suits institutions and eligible non-US users who want Treasury and repo yield held onchain, with redemption to USDC. Its main strength is conservative underlying assets inside Circle's established stablecoin ecosystem. The main caveat is restricted access: it is permissioned and not available in the US, fees are not published on the pages reviewed, and it carries issuer and counterparty risk. It is not a fit for casual DeFi users seeking open access.
Score breakdown
How Circle USYC scores
- Security
- 7.5/10
- Ease of use
- 6.5/10
- Fees
- n/a
- Features
- 7.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Circle USYC?
Circle USYC is a tokenized money market fund that gives onchain exposure to short-duration US Treasuries and reverse repo on US Treasuries. It started as a Hashnote product and became part of Circle after Circle acquired Hashnote in January 2025.
The token is issued by Circle International Bermuda Limited and managed by Hashnote Holdings LLC, according to third-party descriptions. Circle describes it as an institutional-grade tokenized money market fund with near-instant redeemability to USDC, and notes that it is not available in the US.
News coverage in 2025 and 2026 reports strong growth, with one report saying the fund passed 3 billion dollars in assets in May 2026. That is a single-source figure and should be checked against current data.
How Circle USYC works
USYC is a share in a fund. The fund invests in short-duration US Treasuries and in reverse repo agreements backed by US Treasuries. Reverse repo means the fund lends cash overnight and receives Treasuries as collateral.
The interest earned is not paid out as new tokens. Instead, the value of each USYC token rises as the fund accrues returns, and the price is set daily. Holders realise the gain when they redeem.
Access runs through permissioned smart contracts, so only approved wallets can hold the token. Subscriptions and redemptions are linked to USDC onchain, which lets the token be used as a cash-like holding or as collateral by eligible institutions.
6 features
Key features
01
Tokenized money market fund
Each token represents a share in a fund that holds short-duration US Treasuries and reverse repo on US Treasuries.
02
Price-accruing yield
Returns accrue as the token price increases, with daily pricing, rather than through rebasing or separate distributions.
03
USDC redemption
Circle describes near-instant redeemability to USDC, which links the fund to its stablecoin liquidity.
04
Permissioned contracts
The fund uses permissioned smart contracts, so only approved addresses can hold or transact in the token.
05
Collateral and repo use cases
USYC is positioned for use as collateral and in tokenized repo and trading services within Circle's solutions.
06
Onchain transparency
Holdings and activity are visible onchain, giving more transparency than traditional fund shares.
Pros and cons
What we like
- Backed by short-duration US Treasuries and reverse repo, conservative holdings
- Near-instant redemption to USDC according to Circle
- Operated within Circle's broader stablecoin and payments ecosystem
- Daily pricing and onchain transparency
- Positioned for collateral, repo and treasury uses
- Reported to have grown into a multi-billion-dollar fund
Watch out for
- Not available in the US, which excludes a large share of potential users
- Permissioned access means holders must be approved before they can subscribe or redeem
- Fee schedule is not published in the sources reviewed
- Yield comes through a rising token price rather than a separate payout, which may be unfamiliar to newcomers
- Counterparty exposure to the fund issuer, manager, custodians and repo counterparties
- Supported chains are not listed in the sources reviewed, so users must check before using it
Circle USYC fees
Circle does not publish a fee schedule for USYC in the sources reviewed. Management fees, subscription or redemption charges and network costs are set out in the fund's offering documents, which eligible investors should read before subscribing.
Because yield is reflected in the token price, any management fee is typically embedded in the net return rather than charged separately. Gas costs depend on the chain used and are not stated.
Is Circle USYC safe?
USYC uses permissioned smart contracts and is issued as a regulated-style fund share, not an open DeFi pool. The sources reviewed list no smart contract audits, and the issuer does not publish audit details on the pages reviewed. Check the fund documents for custodians, administrators and auditors.
Risks include issuer and manager risk, counterparty risk on reverse repo, interest-rate movement, and the possibility of redemption delays or access restrictions. The product is not available in the US, and eligible users must meet onboarding requirements. This is not investment advice.
6 steps
How to get started with Circle USYC
- 1
Confirm you are in a jurisdiction where USYC is offered, since it is not available in the US.
- 2
Review the fund documents and the issuer terms on Circle's site.
- 3
Complete the onboarding and eligibility checks required for permissioned access.
- 4
Fund the account or wallet with USDC, which is the redemption asset.
- 5
Subscribe to USYC and note the daily price at which you enter.
- 6
Redeem to USDC when you need liquidity, checking cutoffs and any limits first.
Who Circle USYC is for
USYC is aimed at institutions, treasuries, trading firms and eligible non-US investors who want a cash-like onchain holding that earns Treasury-linked yield. It is less suited to retail users who need open, permissionless access or who are based in the US.
Circle USYC FAQs
What is Circle USYC?
USYC is a tokenized fund share issued by Circle through Circle International Bermuda Limited and managed by Hashnote Holdings LLC. It gives onchain exposure to short-duration US Treasuries and reverse repo on US Treasuries. It is described as a tokenized money market fund.
How does USYC earn yield?
The yield accrues through an increase in the token price rather than through separate payouts. Pricing is described as daily. One third-party listing shows a price of about 1.14 dollars, and that figure will change over time.
Can anyone in the US buy USYC?
Circle's own product page says USYC is not available in the US. Access is also permissioned, so eligibility checks apply. Check the current requirements on Circle's site before attempting to subscribe.
Can USYC be redeemed for USDC?
USYC is described as redeemable to and from USDC onchain, with near-instant redeemability. Exact limits, cutoffs and any fees are not published in the sources reviewed, so check the fund documentation.
What is the link between Hashnote and Circle?
Circle acquired Hashnote in January 2025 to integrate USYC with its wider product suite, including USDC. Hashnote's team continues to appear as the fund manager in third-party descriptions.
Is USYC a stablecoin?
No. It is a tokenized fund share, not an algorithmic or fully cash-backed stablecoin, and its price rises over time as the fund accrues returns. It carries market, interest-rate and counterparty risk, though the underlying holdings are short-duration government-linked instruments.
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How we checked
Sources
- 1.defillama.com/protocol/circle-usyc
- 2.finance.yahoo.com/news/circle-subsidiary-hashnote-launches-yield-195837092.html
- 3.finextra.com/newsarticle/45357/circle-buys-tokenised-money-market-fund-hashnote
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