Circle Expands $635M Tokenized Treasury Fund to Solana Amid Rapid RWA Growth

Core Insights - Circle has launched its tokenized U.S. Treasury fund, USYC, on the Solana blockchain, enhancing its presence in a network known for low transaction costs and quick settlement times [1] - USYC is a tokenized version of a short-duration U.S. government money market fund, redeemable in real-time into USDC, and is exclusively available to non-U.S. institutional investors who pass KYC checks, making it permissioned by design [2] - The tokenized treasury market has experienced significant growth, increasing from $2.4 billion to nearly $8 billion in one year, indicating a rising institutional interest in real-world assets on blockchain [3] Company Insights - USYC has a market capitalization of $635 million, positioning it as the fifth-largest tokenized treasury fund [4] - The integration of USYC into Solana opens up new use cases, such as using it as margin collateral for derivatives trading or as a yield-bearing asset in Solana-based DeFi platforms [4] - The implementation of USYC requires protocols for eligibility checks and wallet allow-listing, which may necessitate further development in various applications [4]