Binance Adds Circle’s USYC Stablecoin as Collateral for Institutional Traders

Highlights:

• Binance now accepts Circle’s USYC stablecoin for off-exchange collateral in institutional derivatives trading.
• The USYC stablecoin enables near-instant swaps to USDC for capital flexibility and liquidity control.
• Tokenized Treasury asset demand has doubled in 2025, led by institutional interest in stable and yield-bearing assets.

Circle and Binance have teamed up to make the USYC stablecoin a non-exchangeable collateral for institutional derivatives trading. The integration allows institutional traders to obtain yield and support positions in a safe custodial framework. As stated in the press release, rather than delivering collateral to the exchange itself, clients may now maintain USYC with Binance Banking Triparty or custody service as Ceffu. This flexibility improves the security of assets and enables them to access passive income on margin capital.

Catherine Chen, head of VIP and Institutional at Binance, pointed to the impact of the move. According to her, the integration of the USYC stablecoin marks an important shift in their capital markets approach. She described the idea as creating “secure, accessible and capital efficient offerings to institutions”.

USYC is now supported as off-exchange collateral for @binance institutional clients, unlocking more capital efficient yield with tokenized U.S. Treasuries.

✅ TMMF backed by U.S. Treasuries
✅ Near-instant fungibility with USDC

This collaboration brings the power of tokenized… pic.twitter.com/YHBq0w7eUC

— Circle (@circle) July 24, 2025

Circle’s USYC Stablecoin Bridges Yield and Liquidity

USYC stablecoin is used to signify stocks of the Hashnote International Short Duration Fund Ltd., which is secured by the U.S. Treasury bills. It is structured as a tokenized money market fund, on which yields can be earned on an institutional-grade level but redeemed into USDC promptly.

The ability to quickly convert the assets enables institutional users to relocate their capital from asset-generating funds to stablecoins without interference. This dual-usage feature facilitates its use as a preference in flexible collateral strategies. According to the Chief Business Officer of Circle, Kash Razzaghi, the Binance integration offers to open up new opportunities in terms of the efficiency of institutional capital. He furthermore stated that the near-instant redemption into USDC makes USYC a perfect match to current digital markets.

With the growing popularity of tokenized Treasury assets, institutions are developing an interest in stable, high-liquidity products that provide predictable returns. The USYC stablecoin responds to the three needs in an on-chain ecosystem.

USYC Launch Signals Next Phase of Tokenized Finance

The launch coincides with increased speed in the growth of tokenized real-world assets. Circle states that the tokenized Treasuries have grown in demand, nearly doubling since January 2025. Moreover, blockchain is increasingly used by institutions to strike a balance between yield, stability, and transaction speed.

As USYC is issued natively on BNB Chain, the institutions have even increased access to blockchain-native infrastructure. Furthermore, the rate of settlement is accelerated, settlement risk is reduced, and liquidity is enhanced.

Meanwhile, Circle is keeping pace with the regulatory changes. Recently, the company has applied for a National Trust Bank charter with the OCC. In addition, its IPO continues to have immense growth. Consequently, this reinforces its legal and financial presence in the U.S. markets.

The combination of traditional financial benchmarks with tokenization of infrastructures will allow Circle and Binance to create quicker and more optimized digital markets. Their partnership enables the transition to the yield-generating collateral and programmable capital instruments. The USYC stablecoin now serves not just as a financial product but also as an active player in modern trading workflows. Its availability through Binance gives institutions the chance to deploy assets that work across both traditional and digital systems.