Circle has announced a new partnership with Binance, enabling institutional clients on the exchange to use USYC (its tokenized money market fund), as off-exchange collateral for derivatives trading. This move comes amid rising interest in tokenized U.S. Treasury products, which have seen rapid growth in 2025. With this integration, institutional users can now hold USYC and benefit from its yield while using it as collateral, similar to practices in traditional finance.
The USYC tokens will be held securely either with banks via Binance Banking Triparty or with Ceffu, Binance’s custody arm for institutions. Additionally, USYC will be natively available on BNB Chain, giving users more flexibility to interact with tokenized real-world assets directly onchain. One of the major advantages of USYC is its near-instant convertibility to USDC, Circle’s stablecoin. This feature improves capital efficiency by allowing users to move quickly between tokenized cash and Treasuries.
Speaking on the integration, Circle’s Chief Business Officer, Kash Razzaghi, highlighted USYC’s fit for modern collateral needs in digital markets. Binance’s Head of VIP & Institutional, Catherine Chen, emphasized the exchange’s commitment to providing secure and capital-efficient tools for professional traders.
USYC is part of Circle’s broader vision for real-time financial infrastructure. Unlike traditional systems that operate within banking hours and suffer delays, USYC allows for faster settlement, 24/7 redemptions, and seamless integration into smart contracts. It’s a clear step toward modernizing how collateral moves in global markets, combining blockchain speed, institutional-grade structure, and regulatory compliance in one product. USYC is not available to U.S. persons and may be subject to eligibility requirements, learn more.
