Circle (CRCL), the prominent cryptocurrency firm behind USDC stablecoin, has launched its $635 million tokenized U.S. Treasury fund on Solana blockchain. This strategic expansion leverages Solana's high-speed transactions and low fees, marking significant growth in real-world asset (RWA) tokenization.
The USYC token, representing short-duration U.S. government money market funds, now extends beyond Ethereum, Near, Base, and Canton networks. The fund converts instantly to USDC stablecoin but remains exclusive to verified non-U.S. institutional investors following KYC compliance.
RWA.xyz data reveals explosive growth in tokenized treasury markets, surging from $2.4 billion to $8 billion within a year. This 233% increase highlights institutional demand for blockchain-based government securities, frequently utilized as collateral for lending and yield-generation strategies.
Ranked as the fifth-largest tokenized treasury fund, USYC's Solana integration enables new DeFi applications including derivatives margin collateral and yield-bearing assets. However, implementation requires protocol-level eligibility verification, presenting technical challenges for some platforms.