Circle Makes History: USYC Stablecoin Launches as Binance Adds Collateral Option

Circle just flipped the DeFi script—again. Their new USYC stablecoin isn't just another dollar-pegged token; it's now officially collateral on Binance, giving traders a fresh on-ramp to leveraged positions. Talk about timing: this drops during a week when stablecoin liquidity hit record lows.

Why This Matters

Binance listing USYC as collateral isn't just a liquidity play—it's a power move. Suddenly, every margin trader can tap Circle's infrastructure while bypassing traditional banking choke points. The catch? You're still trusting centralized issuers. Some things never change.

The Cynical Take

Another day, another stablecoin propping up crypto's house of cards. At least this one comes with Binance's stamp of approval—for whatever that's worth after the last regulatory showdown.

Circle and Binance’s USYC play

The partnership between Circle and Binance is a direct response to institutional demand for yield-bearing instruments that don’t force traders to choose between liquidity and returns.

Unlike traditional stablecoins, USYC’s underlying exposure to short-duration Treasuries enables institutions to maintain capital productivity even when deployed as margin. For Binance, the move is a strategic hedge against competitors courting institutional liquidity with their own tokenized Treasury products, from BlackRock’s BUIDL to ONDO Finance’s USDY.

“USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency,” Kash Razzaghi, Chief Business Officer at Circle, said. “Its near-instant redemption into USDC makes it an obvious fit for modern collateral use in digital markets.”

Notably, Circle said USYC will be natively issued on BNB Chain, a technical detail with major implications. Native issuance means faster settlements, lower bridging risks, and deeper integration with Binance’s ecosystem, which are critical for high-frequency trading shops that rely on arbitrage between spot and derivatives markets.

It also signals Binance’s intent to position BNB Chain as a hub for institutional-grade RWAs, rather than just retail DeFi activity.

The timing is no accident. According to a recent Financial Times report, tokenized Treasury products have surged to $1.7 billion in 2025, with institutions increasingly treating them as a cash management tool rather than a speculative bet.

By adopting USYC, Binance appears to be future-proofing its infrastructure for a world where yield-bearing collateral becomes the baseline expectation, not an innovation.