TLDR
Circle moved its USYC fund from overnight reverse repos into U.S. Treasury bills of up to six months.
The token, issuer, and USDC subscription and redemption process stay the same.
Circle did not share the new yield, weighted average maturity, or share of assets moved.
It is unclear whether the change affects USYC’s use as derivatives collateral on Binance.
USYC held about $313 million in assets as of October 27, 2026.
Circle has changed how the fund behind its USYC token invests its cash. The fund has moved from mostly overnight reverse repurchase agreements into U.S. Treasury bills with maturities of up to six months.
The company announced the change on November 9. It said USYC will keep the same issuer, the same token, and the same process for buying and selling shares with USDC.
Circle did not share the fund’s new weighted average maturity or its current yield. It also did not say what share of the fund’s assets has moved into Treasury bills.
The underlying fund for USYC has moved from predominantly overnight reverse repo into longer-duration U.S. Treasury Bills.
Same token. Same issuer. Same subscribe and redeem flows in USDC.
Learn more about USYC: https://t.co/hoFOMqVH5P pic.twitter.com/AFIBRlnqd0
— Circle (@circle) November 9, 2026
What Changed Inside the Fund
Before the switch, the fund relied mainly on overnight reverse repos. These deals involve lending cash against securities for very short periods.
Treasury bills work differently. They pay returns through the gap between the price an investor pays and the face value received when the bill matures.
Longer maturities let the fund keep the yield available at the time of purchase until the bills mature. However, bill prices can move before maturity as interest rates change, and longer bills generally carry more rate exposure.
USYC represents shares in the Hashnote International Short Duration Fund Ltd., a mutual fund registered in the Cayman Islands. Circle International Bermuda Limited acts as token administrator under a Bermuda Monetary Authority digital asset business license.
Unlike USDC, USYC is built to earn yield. Returns build up through changes in the token’s price rather than through separate interest payments.
Collateral Questions Left Open
Institutional traders use USYC as collateral for derivatives positions. In July 2025, a Binance integration allowed eligible institutional clients to post USYC as off-exchange collateral.
That setup uses custody and triparty systems, so collateral stays outside the exchange’s direct control. Circle said the structure supports converting USYC into USDC when traders need cash.
Circle’s announcement did not say whether the new Treasury holdings would affect collateral values, margin rules, or redemption terms at trading venues. It also gave no details on whether exchanges that accept USYC were notified.
The company’s ties with Binance have grown. An October agreement between the two firms included a $100 million investment and a five-year USDC arrangement.
Redemptions within the fund’s instant capacity can settle onchain within one block, according to Circle. Larger requests generally settle on the same or next business day, though separate liquidity options exist.
The minimum investment is $100,000. Subscription and redemption fees are 0.04% and 0.03%, waived on the first $1 million in qualifying combined daily volume, and a performance fee of 10% of yield applies.
Access is limited to eligible non-U.S. persons. Supported networks include Ethereum, Solana, BNB Chain, NEAR, Canton and Arc.
Circle bought Hashnote in January 2025, bringing USYC into its stablecoin business. In March 2025, it announced plans to place the fund under its Bermuda license and link it with USDC for institutional use.
The fund began operating in January 2023, before the acquisition. Circle’s published figures show USYC held about $313 million in assets under management as of October 27, 2026.
The post Circle Shifts $313 Million USYC Fund Into Six-Month Treasury Bills appeared first on Blockonomi .
