The company initially secured comprehensive licensing from the Bermuda Monetary Authority (BMA) in September 2021 through its regulated subsidiary, Circle International Bermuda Limited.
Hashnote is responsible for issuing USYC, which Circle plans to integrate with its USDC stablecoin, allowing for seamless movement between TMMF collateral and USDC. The move is expected to position USYC as a widely used form of yield-bearing collateral across crypto exchanges, custodians, and prime brokers.
A Circle representative stated that Bermuda provides a suitable regulatory framework for USYC and tokenised money market operations, citing the Bermuda Monetary Authority’s regulatory approach as one that prioritises trust, compliance, and transparency in digital assets.
The Premier of Bermuda noted that Circle’s ongoing engagement with the jurisdiction underscores the government’s efforts to offer regulatory clarity for digital financial services. According to the official, financial products such as USYC and USDC contribute to Bermuda’s growing role in digital finance and international business markets.
The government anticipates further opportunities arising from Circle’s initiatives, particularly with the company’s planned involvement in the upcoming Bermuda Digital Finance Forum.
Another representative from Circle highlighted Bermuda’s reputation as a hub for financial innovation, including insurance, capital markets, and digital assets. The company intends to work closely with the Bermuda Monetary Authority to expand its presence and develop new offerings within the jurisdiction.
Circle acquired Hashnote in January 2025, a move further supported by a collaboration with DRW, which, through its subsidiary Cumberland, aimed to improve liquidity and settlement capabilities in USDC and USYC where applicable. Cumberland’s involvement was expected to contribute to improved collateral management by applying its institutional trading experience to the integration of these digital assets.
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