Circle Expands Tokenized U.S. Treasury Fund (USYC) to Solana Blockchain

Circle (CRCL), the company behind the USDC stablecoin, has expanded its tokenized U.S. Treasury fund, USYC, to the Solana blockchain. Known for low-cost and fast transactions, Solana now joins Ethereum, Near, Base, and Canton as supported networks, with BNB Chain expected soon. This move positions Circle to strengthen its role in tokenized real-world assets (RWAs), particularly in decentralized finance (DeFi).

USYC is a tokenized version of a short-duration U.S. government money market fund, redeemable in real time for USDC, Circle’s dollar-backed stablecoin. Unlike most open DeFi assets, USYC is permissioned by design—restricted to non-U.S. institutional investors who meet strict know-your-customer (KYC) requirements. This compliance-driven structure differentiates it from traditional DeFi tokens while still offering blockchain-based liquidity.

The tokenized treasury market has seen remarkable growth, jumping from $2.4 billion a year ago to nearly $8 billion today, according to RWA.xyz. This surge reflects increasing institutional demand for blockchain-based yield-generating assets, particularly government securities. These tokenized treasuries are being leveraged as collateral in lending, margin trading, and other yield-focused strategies.

With a market capitalization of $635 million, USYC ranks as the fifth-largest tokenized treasury product. Its expansion to Solana unlocks new possibilities, such as using USYC as collateral in derivatives trading or integrating it into Solana-native DeFi platforms for yield opportunities. However, adoption faces hurdles: protocols must build in eligibility checks and wallet allow-listing to support USYC, requiring additional development for full integration.

By extending USYC to Solana, Circle continues to bridge traditional finance with blockchain infrastructure. The move signals growing momentum in the tokenized real-world asset sector, further cementing tokenized treasuries as a critical component of institutional DeFi adoption.