Circle (CRCL), the crypto company that is known for its USDC Stablecoin, introduced its tokenized US Treasury Fund offer to Solana on Wednesday and extended its footprint to the blockchain known for cheap transactions and fast settlement times.
The movement is expanding the UYC token beyond Ethereum, Near, Base and Canton Networks and the planned addition of BNB chain.
UYC is a tokenized version of an US government market market fund in a short time. The fund has been exchanged in Real-time in USDC, Circle’s Dollar-Backed Stablecoin, and is only available for non-American institutional investors who pass the knowledge of the know-Your-Customer (KYC). That makes UYC permission from the design, in contrast to other tokens that are often used in Decentralized Finance (Defi).
The wider Tokenized Treasury market has recently seen explosive growth, which today swells to almost $ 8 billion to almost $ 2.4 billion in a year, according to data from RWA.XYZ. This increase reflects the growing institutional appetite for Real-World assets (RWAS) on blockchain rails, in particular revenue-bearing government effects. They are increasingly being used as collateral for loans and margin trade, or as a building block for other strategies for generating yield.
With a market capitalization of $ 635 million, USYC is the fourth largest tokenized Treasury Fund, according to data from RWA.XYZ.
The integration of Solana adds new potential use cases, including the use of UYC as a margin-purposes for derivatives trade or as a proceeds-bearing active in Solana-based decentralized financial (Defi) platforms. However, USYC requires that protocols are integrated to integrate eligibility controls and wallet listing, an obstacle that needs many applications further development to support this.
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