Hashnote / USYC (now part of Circle)

What is Hashnote?

Hashnote was an institutional digital asset platform whose flagship product, USYC (the US Yield Coin), tokenizes short-term US Treasury yield. USYC combined the safety of government securities with blockchain-native settlement, serving crypto funds, trading firms, and corporate treasuries seeking optimized cash management.

In January 2025 Circle acquired Hashnote and folded USYC into its stablecoin infrastructure as an institutional yield leg. USYC now supports atomic conversion to and from USDC, positioning it as the institutional yield instrument that sits alongside Circle's stablecoin rails. USYC has grown to roughly $3 billion, making it one of the largest tokenized Treasury products onchain.

Hashnote no longer operates as a standalone protocol. USYC is best understood today as a Circle product. The sections below describe how USYC works and how it fits into Circle's infrastructure.

How USYC Works

USYC Product Structure

USYC uses a straightforward Treasury strategy:

• Primary Holdings: Short-term US Treasury exposure
• Duration: Money market duration (ultra-short)
• Credit Quality: US Government (highest)
• Yield Pass-through: Net of minimal fees

USYC is designed for institutional simplicity:

• NAV-based pricing (accruing value)
• Same-day liquidity during business hours
• Atomic conversion to and from USDC as a Circle product

Custody and Administration

USYC operates with institutional-grade partners under Circle's ownership:

• Custody: Qualified custodians for Treasury holdings
• Fund Administration: Independent NAV calculation
• Audit: Regular third-party attestations
• Compliance: KYC/AML verification required

Minting and Redemption

1. Complete institutional onboarding and KYC
2. Fund the position (including via USDC conversion)
3. USYC minted at current NAV
4. Tokens delivered to verified wallet

1. Submit a redemption or convert USYC to USDC
2. Tokens burned or converted
3. Settlement same-day (before cutoff)

Key Statistics

• AUM: Roughly $3B in USYC
• Owner: Circle (acquired Hashnote in January 2025)
• Role: Circle's institutional yield instrument, convertible against USDC
• Current APY: Tracks short-term Treasury yields
• Backing: Short-term US Treasury exposure
• Liquidity: Same-day (business hours)
• Target Investors: Institutional and qualified investors

Yield Opportunities

Direct USYC Investment

The core USYC offering for Treasury exposure:

• Direct short-term Treasury yield exposure
• Same-day liquidity
• Atomic conversion to and from USDC
• Institutional-grade custody
• Simple NAV-based accounting

• Crypto fund cash management
• Trading firm margin optimization
• Corporate treasury diversification
• Yield-bearing complement to USDC holdings

Institutional Strategies

Optimize idle cash with USYC:

• Higher yields than bank deposits
• Same-day access
• A yield leg that converts cleanly to and from USDC

USYC as high-quality collateral:

• Earn yield on collateral positions
• Potential margin efficiency versus non-yield stablecoins
• Integration with institutional trading platforms

Yield Comparison

Getting Started with USYC

Step 1: Verify Institutional Status

USYC serves institutional and qualified investors:

• Confirm institutional investor status
• Prepare entity documentation
• Review minimum investment requirements

Step 2: Complete Onboarding

Institutional KYC process:

• Submit institutional application
• Provide entity documentation
• Complete AML verification
• Execute subscription agreements

Step 3: Fund and Mint

Initial investment:

• Fund the position, including via USDC conversion
• Receive USYC at current NAV
• Settlement typically same-day

Step 4: Manage Position

Ongoing operations:

• Track NAV appreciation
• Convert USYC to USDC or redeem as needed
• Access reporting for accounting
• Compare yields with Fensory

Risk Considerations

Treasury yields fluctuate with Fed policy, so returns can decline if rates fall. Duration risk is minimal given the short-term holdings.

USYC now depends on Circle's infrastructure, custody arrangements, and operational integrity.

Regulated yield instruments face potential regulatory changes and jurisdictional requirements.

USYC is not designed for retail investors; minimum investment and verification requirements apply.

USYC carries standard blockchain risks including contract, network, and wallet security considerations.

USYC vs Other Treasury Products

Frequently Asked Questions

Circle acquired Hashnote in January 2025, so USYC is now a Circle product rather than a standalone Hashnote offering.

USYC serves as Circle's institutional yield instrument and supports atomic conversion to and from USDC, letting institutions move between a non-yield stablecoin and a yield-bearing Treasury product.

USYC has grown to roughly $3 billion, among the largest tokenized Treasury products onchain.

No. USYC is designed for institutional and qualified investors. Retail investors should explore alternatives such as Ondo USDY.

No. Following the Circle acquisition, Hashnote no longer operates as a standalone protocol, and USYC is managed as part of Circle's infrastructure.