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Circle shifts USYC fund backing into Treasury bills of up to six months
The tokenized money market product keeps its token, issuer and USDC flows, but Circle did not disclose the fund's new maturity or yield.
Key takeaways
- Portfolio change. USYC's underlying fund now buys Treasury bills with maturities of up to six months instead of relying mainly on overnight reverse repos.
- Product unchanged. The token, issuer and USDC-based subscription and redemption flows stay the same, Circle said.
- Disclosure gaps. Circle did not give the new weighted average maturity, current yield or the share of assets moved into bills.
What happened
Circle said on November 9 that the fund behind USYC, its tokenized money market product, has moved from predominantly overnight reverse repurchase agreements into U.S. Treasury bills with maturities of up to six months. Crypto.news and Blockonomi both reported the announcement, which concerns how the portfolio invests its cash rather than the token itself.
According to the reports, the company said USYC keeps the same token, the same issuer and the same subscription and redemption process using USDC. The product represents shares in the Hashnote International Short Duration Fund Ltd., a mutual fund registered in the Cayman Islands, while Circle International Bermuda Limited acts as token administrator under a digital asset business license from the Bermuda Monetary Authority.
Circle did not provide the fund's updated weighted average maturity, its current yield, or the proportion of assets that moved into Treasury bills. Crypto.news said it contacted Circle for comment and had not received a response by publication.
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Why it matters
The shift changes how the fund earns a return. Overnight reverse repos involve lending cash against securities for very short periods, while Treasury bills pay through the gap between the purchase price and face value at maturity. Longer maturities let the fund hold onto the yield available when the bills are bought until they mature, but bill prices can move before maturity as market interest rates change, and longer-dated bills generally carry more interest-rate exposure.
The change also touches a product that institutional traders can post as collateral for derivatives positions. Circle has previously arranged for holders to pledge USYC while keeping exposure to the fund's returns, and the reports note that Circle did not say whether the revised Treasury holdings would affect collateral valuations, margin requirements or redemption arrangements at participating trading venues.
What the data shows
Circle's published figures show USYC held roughly $313 million in assets under management as of October 27, 2026, according to both reports. The fund began operating in January 2023.
The product requires a minimum investment of $100,000. Circle lists subscription and redemption fees of 0.04% and 0.03% respectively, waived on the first $1 million in qualifying combined daily volume, and a performance fee of 10% of yield. Access is limited to eligible non-U.S. persons, and supported networks include Ethereum, Solana, BNB Chain, NEAR, Canton and Arc.
On settlement, Circle says redemptions within the available instant-redemption capacity can complete onchain within one block, while larger requests generally settle on the same or next business day, with separate liquidity arrangements available. Unlike USDC, USYC is a yield-bearing product whose returns accumulate through changes in its token price rather than through separate interest payments.
Background
Circle acquired Hashnote in January 2025, bringing the USYC tokenized money market business into its operations. In March 2025 the company announced plans to bring the fund under its existing Bermuda digital asset business license and to connect it with USDC for institutional subscriptions and redemptions.
Circle has also expanded the product's use as trading collateral. In July 2025, coverage described a Binance integration that allowed eligible institutional customers to post USYC as off-exchange collateral for derivatives, using custody and triparty infrastructure so that collateral sits outside the exchange's direct control; Circle said the structure supported conversion into USDC when liquidity was needed. An October agreement between Binance and Circle included a $100 million investment and a five-year USDC arrangement, following earlier cooperation on stablecoin services and USYC collateral.
What to watch
Several details remain undisclosed: the fund's new weighted average maturity, its current yield and the size of the Treasury bill allocation. It is also unclear whether exchanges and venues that accept USYC were notified, and whether collateral values, margin rules or redemption terms will be adjusted as a result. Further disclosures from Circle, or guidance from venues that accept the token as collateral, would clarify how the change affects institutional users.
Questions readers ask
Did the USYC token itself change?
No. Circle said the token, issuer and the USDC subscription and redemption process remain the same; only the underlying fund's investment mix changed.
What does the fund hold now?
It invests in U.S. Treasury bills with maturities of up to six months, replacing a portfolio that had relied mainly on overnight reverse repurchase agreements.
How large is USYC?
Circle's published figures put assets under management at about $313 million as of October 27, 2026.
