#usyc

➤ Circle has introduced an automatic zero-fee tier for its tokenized U.S. Treasury fund (USYC), waiving fees on daily volumes up to $1 million across Ethereum and Solana. ➤ USYC, a tokenized version of the Hashnote International Short Duration Yield Fund, offers institutional investors (excluding U.S. persons) a bridge between traditional Treasury investing and on-chain activities, with approximately $3 billion in assets under management. ➤ This move is a competitive strategy to attract institutional capital in a growing market, reinforcing Circle's USDC ecosystem, while underlying risks such as smart contract and regulatory uncertainty remain.

➤ Tokenized US Treasuries have grown significantly, reaching $15.20 billion across 76 products, driven by major issuers like Circle, BlackRock, and Ondo Finance. ➤ Two primary structures exist: tokenized regulated fund shares and offshore wrapper debt tokens, each with distinct eligibility, redemption, and tax implications. ➤ While most products are for Qualified Purchasers or non-US persons, Franklin Templeton's BENJI offers a retail-eligible option, highlighting the evolving landscape of institutional and retail access to on-chain Treasury exposure.

➤ The DeFi landscape is shifting from native yield generation to importing yield from traditional finance, with yield-bearing stablecoins (YBS) becoming a foundational element. ➤ Ethena's sUSDe has seen a significant supply drop, not due to failure, but a market rotation towards YBS with more predictable collateral composition and institutional adoption, like Circle's USYC. ➤ The trend indicates a move towards stability and composability over pure APY, with YBS evolving to incorporate diverse TradFi yield sources and becoming infrastructure for new DeFi innovations.

➤ DeFi is shifting from generating yield to importing and distributing yield from traditional finance, with a focus on verifiable, collateralizable yield-bearing stablecoins (YBS) over high APYs. ➤ Institutional recognition, such as S&P's credit rating for Sky Protocol and risk weighting for USDe, is reshaping market dynamics, favoring predictable yield sources like Treasury-backed stablecoins. ➤ Ethena is overhauling its collateral structure to incorporate traditional finance assets, acknowledging that a single yield source based solely on crypto is no longer sufficient for the YBS market.

➤ Tokenized U.S. Treasury bonds have reached $13.7 billion in market size, serving as crucial infrastructure for stablecoin issuers. ➤ Leading tokenized Treasury products include USYC ($3B), BUIDL ($2.7B), and IBENJI ($1.5B). ➤ The stablecoin market is projected to grow tenfold by 2030, potentially adding $2.7 trillion in on-chain USD supply.

➤ USDC dominated Q1 stablecoin volume with 63% market share, showing significant growth in circulation and transaction volume. ➤ Circle's tokenized money market fund, USYC, has become the largest globally, indicating Circle's expansion into digital financial infrastructure. ➤ The company's financial performance also saw substantial increases in revenue and adjusted EBITDA.

➤ BNB price has broken above the $645.81 resistance level, targeting $670, supported by increased tokenized treasury activity on BNB Chain. ➤ Tokenized treasury assets on BNB Chain have grown to approximately $3.5 billion, with specific assets like USYC, BUIDL, iBENJI, and vBILL mentioned. ➤ The growth in tokenized treasuries and institutional participation is strengthening the BNB Chain ecosystem, though overall market volatility remains a factor.

➤ USYC, a tokenized money market fund, has surpassed $3 billion in Assets Under Management (AUM), indicating strong growth and demand. ➤ This milestone highlights the increasing importance of tokenized funds as on-chain collateral and treasury infrastructure. ➤ The development signifies institutional capital's growing interest in regulated, yield-bearing assets within digital markets.