What is USYC?

USYC is a yield-bearing stablecoin backed by short-term US Treasuries, giving crypto investors a way to earn on-chain yield without leaving stable assets behind.

What is Hashnote USYC?

Hashnote’s USYC, short for US Yield Coin, is a tokenized money market product designed to bring Treasury-backed yield on-chain.

At a glance, USYC looks similar to a stablecoin. It’s dollar-denominated, built for crypto markets, and designed to hold a stable value. But there’s one major difference: it generates yield from real-world assets.

USYC is issued by Hashnote, a digital asset manager focused on tokenized financial products. The token represents exposure to Hashnote’s Short Duration Yield Fund, which invests in short-term US Treasury bills, along with repo and reverse repo agreements.

That structure puts USYC in the growing category of tokenized real-world assets, or RWAs. Instead of sitting idle like traditional stablecoins often do, capital backing USYC is actively deployed into low-risk government debt instruments, making it a yield-bearing token.

The result is a token that can function like cash in crypto markets while also earning a return linked to US interest rates.

What does USYC do?

USYC is built to solve one of crypto’s longest-running inefficiencies: idle stablecoin capital.

Most stablecoins are useful for trading, payments, and storing value, but they usually don’t pass yield back to holders. USYC changes that by combining the accessibility of stablecoins with the yield profile of a Treasury fund.

Users can hold USYC in the same way they’d hold USDC or USDT, while also earning yield generated from short-term government securities.

That makes it useful for:

• Treasury management

• Crypto trading collateral

• On-chain cash management

• Institutional settlement

• DeFi strategies looking for lower-risk yield

USYC has also started gaining traction as collateral on institutional trading venues. Platforms like Deribit have integrated the token, allowing traders to post collateral that continues generating yield while in use.

How does USYC work?

USYC works by tokenizing exposure to traditional financial instruments.

When users mint or purchase USYC, the underlying capital is allocated to Hashnote’s Short Duration Yield Fund. That fund primarily invests in short-term US Treasury bills and repo agreements, which are widely considered among the lowest-risk instruments in traditional finance.

The yield generated from those assets flows back to USYC holders.

Unlike many DeFi yield products, the returns aren’t generated through token incentives, leverage, or speculative lending activity. The yield comes from traditional money markets and government-backed securities.

USYC itself is issued as an ERC-20 token, making it compatible with Ethereum-based infrastructure and broader DeFi ecosystems.

The token is also designed for institutional use. Access to minting and redemption typically requires KYC or KYB verification, and the underlying fund structure operates within regulated frameworks.

That institutional focus has helped USYC position itself as a bridge between traditional finance and crypto-native markets.

How much yield does USYC earn?

USYC’s yield is tied closely to short-term US interest rates.

Because the underlying assets are mainly Treasury bills and repo agreements, returns tend to move alongside the Federal Reserve’s benchmark rates and broader money market conditions.

The exact yield changes over time, but USYC has generally offered yields comparable to short-duration Treasury funds and money market products.

Unlike staking rewards or high-risk DeFi yields, USYC’s returns are designed to be relatively stable and predictable.

That said, yields are not fixed. If interest rates fall, USYC yields will likely decline as well. If rates rise, returns may increase.

USYC vs. traditional stablecoins

In practice, USYC is less about replacing stablecoins and more about upgrading them to yield-bearing stablecoins.

Stablecoins like USDT and USDC are designed to maintain a one-to-one peg with the US dollar. Their reserves may generate income for issuers, but holders typically don’t receive that yield directly.

USYC flips that model.

Instead of simply parking reserves, the backing assets are invested into short-term Treasury products, and the generated yield is distributed through the token structure.

USYC also differs from algorithmic stablecoins, which rely on market incentives or automated mechanisms to maintain their peg.

Its model is far closer to a tokenized money market fund than a purely crypto-native stablecoin.

What are the benefits of USYC?

USYC’s biggest appeal is simple: it gives users access to Treasury-backed yield in a crypto-native format, and that creates a few clear advantages.

Passive yield on idle capital

Instead of holding non-yielding stablecoins, users can keep capital on-chain while still earning returns tied to traditional money markets.

Lower-risk yield profile

USYC’s underlying assets are primarily short-term US government securities and repo agreements, which are generally viewed as lower risk compared to many crypto lending strategies.

Institutional-grade structure

Hashnote operates within regulated frameworks and has positioned USYC for institutional use cases, including collateral management and treasury operations.

On-chain composability

Because USYC exists as a blockchain token, it can integrate with exchanges, custodians, trading venues, and DeFi protocols.

Improved capital efficiency

On platforms that support it, traders can use USYC as collateral while continuing to earn yield.

That’s a major shift from traditional stablecoins, which often sit idle once posted as margin.

What are the risks of USYC?

Like any financial product, USYC comes with tradeoffs and risks.

One of the biggest is accessibility. Unlike retail-focused stablecoins, USYC is designed primarily for institutional and verified participants. That can limit who can mint or redeem directly.

There’s also regulatory risk.

Tokenized Treasury products operate at the intersection of crypto and traditional finance, two industries facing rapidly evolving regulation worldwide.

Operational and smart contract risks still exist, too. Even if the underlying assets are relatively low risk, users remain exposed to infrastructure, custody, settlement, and blockchain-related vulnerabilities.

Liquidity is another factor.

USYC is growing quickly, but it still doesn’t have the same liquidity depth or exchange support as major stablecoins like USDT or USDC.

And while Treasury-backed products are considered relatively safe, they’re not entirely risk-free. Changes in interest rates, counterparties involved in repo markets, or broader market stress can still impact performance.

What platforms support USYC?

USYC has gradually expanded across institutional crypto infrastructure and select DeFi ecosystems, including:

• Deribit

• Fireblocks

• QCP

• Canton Network integrations

• Institutional custody and collateral platforms

Most integrations so far have centered on treasury management, derivatives collateral, and institutional trading workflows rather than retail payments.

Where can I buy USYC?

USYC is primarily available through Hashnote’s institutional onboarding process and supported trading venues.

Depending on jurisdiction and eligibility requirements, users may need to complete KYC or KYB verification before accessing minting and redemption services.

For now, USYC remains more institutionally focused than retail-oriented stablecoins, but that’s also part of its appeal.

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