Circle USYC
USYC
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
USYC (Circle USYC, formerly Hashnote USYC) is an institutional-grade tokenized money market fund representing shares in the Hashnote International Short Duration Yield Fund Ltd., backed by short-term U.S. Treasury bills and reverse repo agreements. Acquired by Circle in January 2025, the asset demonstrates robust operational vitality with approximately $2.92B in AUM, bankruptcy-remote segregation, and regulatory oversight by both the Bermuda Monetary Authority and Cayman Islands Monetary Authority under Regulation S. Active Development (8.0/10) and Tokenomics (7.0/10) reflect solid institutional infrastructure, continuous platform integration, and a transparent fee model (0% management, 10% performance fee). However, Community Support is low (1.5/10) by design, as the fund lacks retail social layers or a DAO. Market and Use Case (6.0/10), Team & Governance (7.5/10), and Security (7.5/10) reflect pristine operational stability and a clean incident ledger (no hacks, exploits, or depegs), though balanced by structural centralized control, lack of secondary market liquidity, strict eligibility requirements ($100k minimum, non-U.S. qualified investors), and extreme holder concentration (~35 addresses). No qualifying red-flag events were established.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Circle USYC (USYC)
Circle USYC (formerly Hashnote USYC) is a tokenized money market fund share representing equity in the Hashnote International Short Duration Yield Fund Ltd. Issued by Circle International Bermuda Limited following Circle's acquisition of Hashnote in January 2025, the fund invests in short-term U.S. Treasury bills and reverse repurchase agreements. Operating on Ethereum, BNB Chain, and Solana, USYC functions under a Regulation S exemption with dual regulatory oversight from the Bermuda Monetary Authority and the Cayman Islands Monetary Authority. The fund maintains a bankruptcy-remote, segregated account structure and manages approximately $2.9 billion in total assets.
The token provides institutional investors with short-duration yield exposure, 24/7 on-chain settlement, primary redemption into USDC, and utility as cross-margin collateral. USYC employs a demand-driven, elastic supply model governed by primary subscriptions and redemptions rather than algorithmic expansion. The fund operates with a 0% management fee and a 10% performance fee, tracking an appreciating net asset value (NAV) rather than maintaining a fixed nominal peg.
USYC involves specific counterparty, regulatory, and structural risks. Participation is restricted to verified non-U.S. qualified investors with a minimum investment requirement of $100,000. The asset exhibits high holder concentration across approximately 35 addresses and lacks secondary market liquidity, relying almost entirely on primary-market minting and redemption through Circle. The smart contracts incorporate centralized control mechanisms, including permissioned transfers and address-freezing capabilities, and public third-party code audit reports were not verifiable in evaluation records. Additionally, parent issuer Circle has faced public scrutiny regarding its centralized discretionary freeze authority following external decentralized finance exploits involving USDC cross-chain transfers.