Circle USYC (Hashnote International Short Duration Yield Fund Ltd.)

Overview

USYC is a token representing shares in a Cayman Islands mutual fund, originally launched by Hashnote and acquired by Circle in January 2025. The fund invests in short-dated US government securities and reverse repurchase agreements backed by them. Subscriptions and redemptions are made in USDC and it is offered only to non-US persons.

Short-term US government securities and overnight reverse repo collateralised by US government securities

Product structure

Legal wrapper

Cayman Islands registered mutual fund (Hashnote International Short Duration Yield Fund Ltd.)

Domicile

Cayman Islands

Regulatory status

Fund registered as a mutual fund with CIMA; token administrator CIBL licensed for digital asset business by the Bermuda Monetary Authority; offered under Regulation S

Asset segregation

Issuer docs state assets are held in segregated custodial accounts at the fund's prime broker (prime broker not named in pages reviewed); token represents fund shares.

Custodian

Unverified

Fund administrator

NAV Fund Services (per rwa.xyz)

Auditor

Valaston International (per rwa.xyz)

Transfer agent

Unverified

Tokenization agent

Circle International Bermuda Limited (token administrator)

Proof of reserve

On-chain oracle publication of price and holdings; no third-party PoR identified

Redemption & liquidity

Redemption terms

Redemptions into USDC; amounts within instant-redemption capacity settle in one block, larger amounts T+0 or T+1 (issuer page). rwa.xyz notes requests 9am-2pm ET prior business day for T+1.

Secondary liquidity

Used as off-exchange collateral at Binance (via Binance Banking Triparty or Ceffu); holders must be onboarded

Yield mechanism

NAV accrual (token price rises; no rebasing)

Fees

Performance fee 10% of yield; subscription 0.04% and redemption 0.03%, waived on combined daily volume up to USD 1M (issuer page). rwa.xyz lists management fee 0%.

On-chain information

EthereumBNB ChainSolanaArcCantonNEAR

Token standard

ERC-20; SPL (Token-2022) on Solana

Transfer restrictions

Permissioned; KYC-onboarded non-US investors

Contract addresses: unverified

Notes & material events

Circle's USYC product page displayed an AUM figure of about USD 313M, which differs sharply from rwa.xyz's USD 2.40B (BNB Chain accounts for most supply); rwa.xyz also shows a 13% decline over 30 days. rwa.xyz lists launch as 2023-05-01 vs issuer inception 2023-01-05. Circle acquired Hashnote 2025-01-21 (AUM then USD 1.52B per announcement). Custodian/prime broker not named in pages reviewed.

Revision history

No published revisions.