Circle acquires tokenization startup Hashnote, incubated by Cumberland Labs

Stablecoin issuer Circle has acquired Hashnote, a tokenization startup incubated by Cumberland Labs, the web3 venture studio backed by institutional trading giant DRW.

Circle did not disclose the financial terms of the deal. Hashnote was launched with a $5 million investment from Cumberland Labs.

Hashnote is the issuer of U.S. Yield Coin (USYC), the largest tokenized money market fund globally, with over $1.25 billion deployed, according to rwa.xyz data. As part of the acquisition, Circle plans to integrate USYC with its stablecoin, USDC, making USYC a leading option for yield-bearing collateral on crypto exchanges and with custodians and prime brokers.

"There is an enormous and immediate opportunity to bring yield-bearing collateral into crypto market structures, and through seamless integration with USDC, enable market participants to convert between USDC and USYC on a 24/7/365 basis," said Jeremy Allaire, CEO and Chairman of Circle, in a post on X .

Alongside the acquisition , Circle announced a strategic partnership with DRW via its crypto market-making subsidiary, Cumberland. This collaboration will expand Cumberland's liquidity and settlement services for USDC and USYC, boosting institutional adoption in crypto markets, according to Allaire.

"Additionally, we will work together to bring these onchain innovations into traditional financial markets, where tokenized cash and collateral can unlock enormous value for every financial market participant," Allaire said.

Circle also plans to deploy USDC on the Canton Network, a public blockchain for private financial transactions. With USYC already supported on Canton, integrating USDC will enable seamless convertibility between collateral and cash for onchain use in traditional financial markets, Allaire said.

Tokenization , the process of turning real-world assets into digital tokens on a blockchain, is gaining momentum across traditional finance and crypto. According to Boston Consulting Group, tokenized funds could reach over $600 billion in assets under management by 2030, up from around $3.5 billion today. Regulators are also taking note, with the U.S. Commodity Futures Trading Commission exploring new guidelines for using tokenized assets as collateral. Proponents argue that tokenization simplifies transactions, lowers costs and broadens access to investments.