Circle Expands Crypto Footprint with USYC Launch on Solana Blockchain

TLDR:

• Circle’s USYC tokenized fund is now live on Solana, offering institutions yield-accruing shares backed by U.S. government assets.
• USYC accrues yield via token price growth and can redeem directly to USDC for approved non-U.S. institutional investors.
• Circle confirmed Solana integration enables USYC to be used as collateral in lending, trading, and automated yield vaults.
• Eligibility restrictions remain as USYC requires KYC, AML, and wallet allow-listing before institutions can access it.
  

The crypto market has lately seen another expansion move from Circle. The company confirmed its tokenized money market fund, USYC, is now live on Solana. This brings an interest-accruing product to one of the fastest blockchain networks. 

Institutions that qualify can now redeem, subscribe, and deploy USYC inside Solana-based applications. The development sets the stage for new yield-bearing opportunities in permissioned DeFi environments.

USYC Integration Expands to Solana Blockchain

According to Circle’s blog, USYC is the onchain version of a short-duration U.S. government money market fund. It redeems directly to and from USDC, with price updates reflecting accrued yield. 

Until now, USYC was already available on Ethereum, Base, Canton, and NEAR, with BNB Chain listed as next in line.

Circle said the Solana launch makes use of the blockchain’s speed and low-latency confirmations. Developers can integrate USYC as an SPL-native token, with daily price feeds delivered via oracles. This structure enables programs to treat USYC as collateral while maintaining yield accrual in real time.

Circle’s account on X, explained that collateral in crypto trading often remains static. USYC aims to change that by giving collateral the ability to generate returns. The token’s price grows with the underlying fund, removing the need for separate distribution of rewards.

Eligibility requirements still apply. Circle clarified that USYC is only available to non-U.S. institutional investors who pass onboarding checks. Wallet allow-listing is also mandatory before interaction on Solana.

How Crypto Builders Can Use USYC on Solana

Developers on Solana can now incorporate USYC across lending, trading, and automated yield vaults. 

Circle stated that lending protocols can list USYC as an asset, giving suppliers exposure to the fund’s yield. Borrowers using USYC as collateral could see lower effective interest costs since collateral keeps earning returns.

Perpetual trading venues can also accept USYC as margin collateral. This allows traders to keep generating yield on posted margin while participating in leveraged markets. In addition, automated vaults on Solana can deploy USYC as a base asset, layering strategies over the token’s daily price growth.

Integration requires use of Solana’s Token-2022 program with built-in controls to restrict transfers. 

Oracles must be connected to provide daily price-per-share updates. Larger redemptions, Circle noted, may take up to T+1 to settle, while smaller amounts can process within a single block.

Circle stressed that DeFi protocols must configure their systems for eligibility. Any use of USYC outside of permissioned frameworks would require development work to enforce access rules. The company pointed out that deposits and withdrawals should only allow verified wallets.

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