Circle to expand tokenized money market operations in Bermuda

Circle Internet Group is expanding its tokenized financial services in Bermuda. 

The company will bring the Hashnote Tokenized Money Market Fund under its existing Digital Assets Business Act license with the Bermuda Monetary Authority, according to a company press release.

Hashnote issues USYC, a tokenized money market fund that held nearly $1 billion in assets as of March 6, 2025. Tokenized money market funds function similarly to traditional ones but are represented as digital assets on blockchain networks. Because they exist in digital form, investors can buy and sell shares of these funds more easily.

Circle plans to integrate USYC with USDC ( USDC ), its widely used stablecoin , allowing users to move between them seamlessly.

USYC collateral

This move could position USYC as a key form of collateral for crypto exchanges, custodians, and financial firms handling digital assets. Collateral refers to assets that traders and institutions pledge to back loans or financial transactions.

Circle has operated in Bermuda since 2021 under the BMA’s regulatory framework. The company’s CEO, Jeremy Allaire, said Bermuda’s approach to digital asset regulation makes it a natural fit for Circle’s expanding tokenized money market operations. 

By linking USYC to USDC, Circle aims to offer a more flexible way for institutions to access liquidity while earning yield from USYC’s underlying assets, which include U.S. Treasuries and other short-term investments.