Circle on Thursday announced that the world’s biggest crypto exchange would begin accepting USYC, a type of stablecoin that shares yield with investors, as collateral from institutional clients. While the news will be of interest primarily to a niche subset of traders, the new arrangement is significant as another step in the rapid integration of the traditional and crypto realms of finance.
Circle, a newly public company that is the world’s second biggest issuer of stablecoins, acquired USYC as part of a larger acquisition in January. USYC stands out from most other stablecoins in that it is a tokenized version of a money-market fund and, unlike conventional stablecoins like USDC and Tether, it shares interest proceeds with those who hold it.
