In one of the largest acquisitions in crypto sector history, Circle, the company behind USDC stablecoin, announced on Tuesday the acquisition of Hashnote, an issuer of tokenized real-world assets (RWA). The deal is worth $1.3 billion.

What is Hashnote?

Hashnote is the issuer of USYC, a token launched by Cumberland Labs. According to independent analysts at RWA.xyz, USYC is the largest tokenized treasury and money market fund in the world. This makes Hashnote a strategic asset for Circle, which wants to use it to strengthen its position in the crypto market.

Announcement at the World Economic Forum

The acquisition was announced during the World Economic Forum in Davos. This annual event brings together major players in the crypto world, such as Circle and Coinbase, to promote the adoption of cryptocurrencies.

In a press release, Circle announced that the company plans to fully integrate USYC into USDC. This should create a smooth connection between assets in treasury and money market funds (TMMF) and USDC, one of the most widely used stablecoins worldwide.

Competing with Tether

Currently, Circle's USDC stablecoin has a market capitalization of about $51 billion. This makes it the second-largest stablecoin in the world, behind Tether's USDT, which has a market capitalization of $138 billion. Yet USDT does not have an MiCa license, which could give Circle a potential edge in the European market.

Important step in stablecoin market

Jeremy Allaire, CEO of Circle, describes the acquisition as a milestone for the stablecoin industry: "The integration of USYC and Hashnote into Circle's platform marks an important moment in the development of the stablecoin market."

According to Allaire, this integration will make cash and short-term government bonds convertible efficiently, with the speed and flexibility of blockchains and crypto markets.

Conclusion

With this acquisition, Circle takes an important step in its growth ambitions and strengthens its competitive position against market leader Tether. The company positions itself as a key player in the future of tokenized assets and the broader stablecoin market.