According to Fortune magazine, Circle announced that Binance will begin accepting USYC, a stablecoin that shares yield with investors, as collateral for institutional clients. While many institutional traders using platforms like Binance will use Bitcoin or other crypto assets as collateral, some traditional institutions remain hesitant to do so. Catherine Chen, Head of Binance VIP and Institutional Business, said that part of the reason is that the dismal collapse of FTX has made many wary of providing collateral on exchanges. Binance is trying to address this issue through a service called "Banking Triparty." This service involves Binance partnering with traditional banks to act as custodians and use assets held by the banks as collateral for cryptocurrency trading. She added that many partners are working with Binance to integrate USYC, which will provide faster settlement speeds. [Foresight News]

Circle has turned its tokenized Treasury fund into more than just a passive yield play. With Binance now accepting USYC as off-exchange collateral, the stablecoin issuer is quietly expanding the functional footprint of tokenized real-world assets in crypto’s institutional stack. On July 24, USDC issuer Circle announced that Binance would integrate its yield-bearing USYC stablecoin as eligible collateral for institutional derivatives trading, marking the first time a major exchange has enabled yield generation on margin assets. The arrangement, facilitated through Binance’s triparty banking partners and custody arm Ceffu, allows clients to park USYC as backing for trades while earning returns akin to traditional money market funds. Circle describes USYC as one of the “world’s leading” tokenized money market funds serving as a digital representation of a share of the Hash note International Short Duration Fund Ltd. Crucially, USYC’s near-instant convertibility to USDC provides an escape hatch for liquidity needs, a feature Circle executives pitched as critical for institutional adoption. The partnership between Circle and Binance is a direct response to institutional demand for yield-bearing instruments that don’t force traders to choose between liquidity and returns. Unlike traditional stablecoins, USYC’s underlying exposure to short-duration Treasuries enables institutions to maintain capital productivity even when deployed as margin. For Binance, the move is a strategic hedge against competitors courting institutional liquidity with their own tokenized Treasury products, from BlackRock’s BUIDL to Ondo Finance’s USDY. “USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency,” Kash Razzaghi, Chief Business Officer at Circle, said. “Its near-instant redemption into USDC makes it an obvious fit for modern collateral use in digital markets.” Notably, Circle said USYC will be natively issued on BNB Chain, a technical detail with major implications. Native issuance means faster settlements, lower bridging risks, and deeper integration with Binance’s ecosystem, which are critical for high-frequency trading shops that rely on arbitrage between spot and derivatives markets. It also signals Binance’s intent to position BNB Chain as a hub for institutional-grade RWAs, rather than just retail DeFi activity. The timing is no accident. According to a recent Financial Times report , tokenized Treasury products have surged to $1.7 billion in 2025, with institutions increasingly treating them as a cash management tool rather than a speculative bet. By adopting USYC, Binance appears to be future-proofing its infrastructure for a world where yield-bearing collateral becomes the baseline expectation, not an innovation.

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Circle breaks ground with USYC stablecoin, Binance collateral option

July 24 (UTC+8), according to BNB Chain Chinese, Circle's interest-bearing stablecoin USYC (with US Treasury bonds as the underlying asset) will soon be natively issued on BNB Chain. This move will significantly improve the capital efficiency of global users, achieve income acquisition, liquidity maintenance, and transaction speed improvement, and can be operated on the entire chain. [Source: PANews] [MetaEra]

Circle's interest-bearing stablecoin USYC is coming to BNB Chain natively

On July 24, according to BNB Chain Chinese, Circle's interest-bearing stablecoin USYC (with U.S. Treasury bonds as the underlying asset) will soon be natively issued on BNB Chain. This move will significantly improve the capital efficiency of global users, achieve income acquisition, maintain liquidity, and increase transaction speed, and can be operated on the entire chain. [PANews]

USYC interest-bearing stablecoin will be issued natively on BNB Chain

According to official sources, Binance is now officially expanding its institutional OTC settlement services, adding support for two tokenized real-world assets (RWA) as collateral: USYC and cUSDO. Institutional users can now use these yield-bearing tokenized stable assets as collateral through Banking Triparty custody and MirrorRSV, to trade securely on the Binance platform while maintaining off-exchange custody and optimizing capital efficiency. [Odaily]

Binance Now Supports USYC and cUSDO as OTC Collateral

<p>News, July 24th, according to official sources, Binance has now officially expanded its institutional over-the-counter settlement service to add support for two tokenized real-world assets (RWA) as collateral: USYC and cUSDO. Institutional users can now use these yield-bearing tokenized stable assets as collateral through Banking Triparty custody and MirrorRSV, maintaining off-platform custody and optimizing capital efficiency while securely trading on the Binance platform.</p> [BlockBeats]

Binance now supports using USYC and cUSDO as off-chain collateral

According to official news on July 24, Binance has officially expanded its institutional OTC settlement services to support two new tokenized real-world assets (RWA) as collateral: USYC and cUSDO. Institutional users can now use these yield-bearing tokenized stable assets as collateral through Banking Triparty custody and MirrorRSV, allowing them to trade securely on the Binance platform while maintaining off-exchange custody and optimizing capital efficiency. [BlockBeats]

Circle announced that Binance will begin accepting USYC, a stablecoin that shares yields with investors, as collateral for institutional clients. While many institutional traders using platforms like Binance would use Bitcoin or other crypto assets as collateral, some traditional institutions are still reluctant to do so. Catherine Chen, Head of Binance VIP and Institutional Business, said that part of the reason is that the dismal collapse of FTX has made many wary of providing collateral on exchanges. Binance is trying to address this issue through a service called "Banking Triparty." This service involves Binance partnering with traditional banks to act as custodians and using assets held by the banks as collateral for cryptocurrency trading. She added that many partners are working with Binance to integrate USYC, which will provide faster settlement speeds. Binance also announced that it will integrate another yield-bearing stablecoin, cUSDO. cUSDO is short for OpenEden OpenDollar and is issued by OpenEden Digital, a Bermuda-licensed and regulated entity. (Fortune) [Odaily]

Binance will accept Circle's stablecoin USYC as collateral for institutional clients

Circle announced that Binance will accept its yield-bearing stablecoin USYC as collateral for institutional clients. USYC, as a token linked to traditional money market funds, differs from ordinary stablecoins such as USDC and Tether in that it can distribute interest income to holders. Circle says the move is expected to improve the settlement efficiency of institutional investors in crypto trading, especially solving the settlement delays of traditional financial systems. Binance also announced that it will integrate another yield-bearing stablecoin, cUSDO, issued by Bermuda-regulated OpenEden Digital. [Fortune]

Circle Announces Binance to Accept Its Yield-Bearing Stablecoin USYC as Collateral for Institutional Clients

On July 24, according to Fortune, Circle announced that Binance will begin accepting USYC, a stablecoin that shares yields with investors, as collateral for institutional clients. While many institutional traders using platforms like Binance use Bitcoin or other crypto assets as collateral, some traditional institutions remain reluctant to do so.

Catherine Chen, Head of Binance VIP and Institutional Business, said that part of the reason is that the disastrous collapse of FTX has made many people wary of providing collateral on exchanges. Binance is trying to address this issue with a service called "Banking Triparty." This service involves Binance partnering with traditional banks to act as custodians and using assets held by the banks as collateral for cryptocurrency trading. She added that many partners are working with Binance to integrate USYC, which will provide faster settlement speeds. Binance also announced that it will integrate another yield-bearing stablecoin, cUSDO. cUSDO is short for OpenEden OpenDollar and is issued by OpenEden Digital, a Bermuda-licensed and regulated entity. [BlockBeats]

On July 24, according to Fortune, Circle announced that Binance will begin accepting USYC, a stablecoin that shares revenue with investors, as collateral for institutional clients. While many institutional traders using platforms like Binance use Bitcoin or other crypto assets as collateral, some traditional institutions remain reluctant to do so.

Catherine Chen, Head of Binance VIP and Institutional Business, said that part of the reason is that the disastrous collapse of FTX has made many people wary of providing collateral on exchanges. Binance is trying to address this issue with a service called "Banking Triparty." This service involves Binance partnering with traditional banks to act as custodians and using assets held by the banks as collateral for cryptocurrency trading. She added that many partners are working with Binance to integrate USYC, which will provide faster settlement speeds. Binance also announced that it will integrate another yield-bearing stablecoin, cUSDO. cUSDO is short for OpenEden OpenDollar and is issued by OpenEden Digital, a Bermuda-licensed and regulated entity. [BlockBeats]

Binance to Accept Circle's Stablecoin USYC as Collateral for Institutional Clients

Binance to Integrate Circle's USYC and cUSDO Stablecoins as Collateral for Institutional Clients

Binance and Circle, two giants of the cryptocurrency industry, have deepened their collaboration, integrating Circle’s yield-generating asset, USYC, as collateral for Binance’s institutional clients. This move marks the latest step in the strategic partnership between Circle Internet Group Inc. (CRCL) and Binance. Circle was previously known for its close ties to Coinbase. With the new integration, Binance's institutional users will be able to use the USYC token as collateral for over-the-counter derivatives transactions. USYC shares a similar structure to BlackRock's tokenized money market fund, BUIDL. Furthermore, USYC will be issued directly on Binance's native blockchain, BNB Chain, giving users easier access to on-chain financial applications. Catherine Chen, Head of VIP and Institutional at Binance, said in a statement, “We are committed to building secure, accessible, and capital-efficient solutions for institutional investors. The integration of USYC into the Binance trading environment is a significant demonstration of our support for the future of capital markets.” Circle recently integrated USYC into its platform through its acquisition of Hashnote, a tokenization startup launched by Cumberland Labs. According to data from RWA.xyz, approximately $686 million in assets are represented on-chain through reverse repurchase agreements, largely based on US government bonds. USYC acts as a bridge between tokenized cash and Treasury bonds, offering near-instant convertibility with Circle’s stablecoin, USDC. It is also used as a yield-generating collateral option on crypto exchanges, custodians, and in transactions with prime brokers. *This is not investment advice.

An Unexpected Move from Binance: They Made a Deal with a Cryptocurrency Linked to Their Competitor

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.

According to Circle’s Chief Business Officer, Kash Razzaghi, the importance of USYC also lies in its appeal to institutional traders as a source of collateral. Many of these traders currently post money market securities as collateral when they want to trade on crypto platforms like Binance. While this arrangement works well for purposes of trading, it is also cumbersome because it can take a day or more to settle a transaction—especially on weekends when the traditional financial system, which unlike crypto does not run 24/7, is closed.

This is not the case when traders post USYC, Razzahi explained, since the collateral can be instantly redeemed for its companion stablecoin USDC, which is fast becoming a practical alternative to traditional dollars.

While many institutional traders who use platforms like Binance post collateral in Bitcoin or other crypto assets, some traditional organizations remain reluctant to do so. According to Catherine Chen, Binance’s Head of VIP and Institutional, this in part because the infamous collapse of FTX left many wary of leaving collateral on an exchange.

Chen added that Binance has sought to address this concern with an offering called Banking Triparty that involves the company working with traditional banks to let them act as custodians, and post assets held at the bank as collateral for crypto trading. She added that many of these same partners are working with Binance on integrating USYC, which would provide for faster settlement.

On Thursday, Binance also announced that it would likewise be integrating cUSDO, another yield-bearing stablecoin. cUSDO, which stands for OpenEden OpenDollar, is issued by OpenEden Digital, a Bermuda-licensed and regulated entity.

This story was originally featured on Fortune.com

USDC

Binance adds USYC as Circle expands footprint of its yield-bearing stablecoin

据Fortune杂志报道，Circle宣布Binance将开始接受USYC作为机构客户的抵押品。USYC是一种与投资者共享收益的稳定币。虽然许多使用Binance等平台的机构交易者会使用比特币或其他加密资产作为抵押品，但一些传统机构对此仍持谨慎态度。Binance VIP和机构业务负责人Catherine Chen表示，部分原因是FTX的惨败让很多人对在交易所提供抵押品感到担忧。Binance正通过一项名为“Banking Triparty”的服务来解决这一问题。该服务涉及Binance与传统银行合作，由银行作为托管方，使用银行持有的资产作为加密货币交易的抵押品。她补充说，许多合作伙伴正在与Binance合作整合USYC，这将带来更快的结算速度。[Foresight News]

Binance将整合Circle的USYC和cUSDO稳定币，作为机构客户的抵押品

據Fortune雜誌報道，Circle宣佈Binance將開始接受USYC作爲機構客戶的抵押品。USYC是一種與投資者共享收益的穩定幣。雖然許多使用Binance等平臺的機構交易者會使用比特幣或其他加密資產作爲抵押品，但一些傳統機構對此仍持謹慎態度。Binance VIP和機構業務負責人Catherine Chen表示，部分原因是FTX的慘敗讓很多人對在交易所提供抵押品感到擔憂。Binance正通過一項名爲“Banking Triparty”的服務來解決這一問題。該服務涉及Binance與傳統銀行合作，由銀行作爲託管方，使用銀行持有的資產作爲加密貨幣交易的抵押品。她補充說，許多合作伙伴正在與Binance合作整合USYC，這將帶來更快的結算速度。[Foresight News]