Global largest virtual asset exchange Binance announced that it will integrate Circle's yield-generating stablecoin 'USYC' as a collateral asset option for institutional clients. This marks the first official collaboration where Circle, after terminating its partnership with Coinbase, has fully partnered with Binance, signifying a strategic relationship transformation between the two companies.
Through this measure, Binance allows institutional clients to use USYC as collateral for asset management and loans on its derivatives exchange. USYC is natively issued on the BNB chain, further enhancing its on-chain asset utilization.
Circle's USYC is a yield-generating digital asset tokenizing a money market fund investing in US Treasury bonds, backed by approximately $686 million in physical assets. Unlike the existing USDC, it has a structure that generates interest, enabling institutional investors to simultaneously receive stability and profitability.
Catherine Chen, Head of Institutional Partnerships at Binance, stated, "USYC will be a flexible means for institutions to more efficiently explore on-chain assets" and evaluated that "this partnership represents an important advancement towards the future of capital markets".
Circle previously selected Binance as its USDC distribution partner at the end of last year, concluding its relationship with Coinbase. This USYC collaboration is seen as a strategic move extending that relationship, aiming to simultaneously optimize Binance's corporate treasury management efficiency and maximize returns.
The industry interprets this announcement as a signal of market expansion for tokenized real-world assets (RWA). As stablecoins evolve beyond mere payment instruments to become yield-generating assets, the boundaries between traditional finance and digital assets are gradually dissolving.
