Binance Institutional Clients Gain Game-Changing Collateral Option: Circle’s USYC Now Accepted

Big money just got a smoother ride into crypto. Binance—the exchange that never sleeps—now lets institutional traders post Circle’s yield-bearing USYC stablecoin as collateral. No more forced liquidations because your BTC dipped? That’s the pitch.

Why it matters: Institutions hate volatility more than a banker hates transparency. USYC’s yield cushion (backed by those oh-so-reliable short-term Treasuries) gives whales a safer harbor during storms—while still keeping them in the game.

The fine print: This isn’t your grandma’s margin account. We’re talking OTC desks and hedge funds moving nine figures. Binance’s institutional arm clearly thinks stablecoin collateral is the next battleground for liquidity. Smart—or desperate to keep whales from fleeing to Coinbase?

Bottom line: Another brick in crypto’s institutional facade. Just don’t ask what happens when T-bill yields drop below DeFi APYs again. (Wall Street would never chase yield recklessly… right?)

Partnership Details and Market Integration

“USYC is a great fit for modern digital finance,” said Kash Razzaghi, Chief Business Officer at Circle. “It enables seamless, efficient collateral use in crypto markets.”

Catherine Chen, Head of Binance VIP & Institutional, added, “This MOVE aligns with Binance’s mission to provide secure, flexible financial tools as crypto converges with traditional finance.”

Circle will list USYC on BNB Chain, Binance’s native blockchain, enabling direct access to DeFi applications and tokenized asset products within Binance’s ecosystem. The integration gives USYC greater utility beyond use as collateral into more widespread decentralized finance use cases.

Growing Institutional Demand for Tokenized Assets

Tokenized U.S. Treasury products have experienced significant growth in 2025, according to digital asset research firms tracking the sector. USYC can be swapped near-instantly into USDC, Circle’s stablecoin, providing institutions flexibility to switch between yield-bearing and liquid assets based on market conditions.

Off-exchange collateralization represents a growing trend among crypto institutions seeking capital efficiency while retaining direct asset control. USYC is a product that provides regulated bridges between decentralized finance and traditional finance, especially with institutional uptake of real-world asset tokenization gaining momentum.

The collaboration responds to institutional interest in yield-generating assets that balance regulatory approval with blockchain-native advantages such as programmability and settlement in NEAR real-time.

Also Read: Tether CEO Plans U.S. Stablecoin Push, Circle CEO Fires Back