Circle has announced the integration of its USYC stablecoin on Binance, allowing institutional clients to use it as collateral for derivatives trading.
USYC Integration on Binance
On July 24, Circle announced that Binance would accept their stablecoin USYC as collateral for trading in derivatives, marking an important step in the cryptocurrency domain. This represents the first major exchange integration allowing earning yield on collateral assets.
Benefits of USYC for Institutional Clients
USYC serves as a tokenized money market fund, allowing institutional clients to maintain capital productivity even when deployed as margin. According to Kash Razzaghi, Chief Business Officer at Circle, "the integration of USYC with Binance unlocks new possibilities for institutional capital efficiency." Importantly, USYC's convertibility into USDC adds a layer of liquidity.
Significance of Integration for the Market
Circle has stated that USYC will be natively issued on the BNB Chain, which ensures faster processes and reduced risks. This confirms Binance's intention to position BNB Chain as a hub for institutional tokenized assets. Furthermore, tokenized treasury products are growing in popularity, becoming commonplace for institutions.
The integration of USYC on Binance highlights the growing trend of utilizing tokenized assets in institutional finance and may lead to new trading and capital management opportunities.
