Binance institutional clients can now use Circle’s USYC token as off-exchange collateral, enabling on-chain yield generation while maintaining asset custody outside the exchange. Circle Internet Group made the announcement today, enabling VIP and institutional users to hold USYC with eligible custodians and utilize it as trading collateral without moving assets to Binance outright.
USYC, or USD Coin Yield, is a Tokenized Money Market Fund (TMMF) backed by U.S. government Treasury bills and cash equivalents. It represents a stable way to earn yield as passive income while keeping your funds safe in a token form on the blockchain.
Partnership Details and Market Integration
“USYC is a great fit for modern digital finance,” said Kash Razzaghi, Chief Business Officer at Circle. “It enables seamless, efficient collateral use in crypto markets.”
Catherine Chen, Head of Binance VIP & Institutional, added, “This move aligns with Binance’s mission to provide secure, flexible financial tools as crypto converges with traditional finance.”
Circle will list USYC on BNB Chain, Binance’s native blockchain, enabling direct access to DeFi applications and tokenized asset products within Binance’s ecosystem. The integration gives USYC greater utility beyond use as collateral into more widespread decentralized finance use cases.
Growing Institutional Demand for Tokenized Assets
Tokenized U.S. Treasury products have experienced significant growth in 2025, according to digital asset research firms tracking the sector. USYC can be swapped near-instantly into USDC, Circle’s stablecoin, providing institutions flexibility to switch between yield-bearing and liquid assets based on market conditions.
Off-exchange collateralization represents a growing trend among crypto institutions seeking capital efficiency while retaining direct asset control. USYC is a product that provides regulated bridges between decentralized finance and traditional finance, especially with institutional uptake of real-world asset tokenization gaining momentum.
The collaboration responds to institutional interest in yield-generating assets that balance regulatory approval with blockchain-native advantages such as programmability and settlement in near real-time.
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