What is Circle USYC?
Circle USYC is a tokenized yield product — the US Yield Coin, originally launched as Hashnote USYC and now under Circle. It is important to be clear from the start: USYC is not a conventional $1 stablecoin. It is a yield-bearing token backed by short-term US Treasury exposure (typically via reverse repo and money-market-style instruments), and its token price is designed to accrue value over time rather than sit exactly at one dollar. Our data shows a market capitalization of about $2.92B across 2 chains.
Why does our peg deviation look large?
Our latest reading shows a peg deviation of roughly 13.5% from $1. For a normal stablecoin that would signal a serious problem — but for USYC it largely reflects design, not distress. Because the token accrues yield, its price is expected to trade above $1. That is why USYC ranks lower (14th of 15, best score 5.97) in a ratings model built around a $1 peg: the peg criterion penalizes any deviation from a dollar, and a yield-accruing token deviates by design.
What backs it?
Circle describes USYC as backed by short-dated US government securities and equivalent instruments. It is aimed primarily at institutional and qualified users as an on-chain cash-management tool, and it interoperates with Circle's broader stablecoin stack. We measure market behavior and price relative to $1; we do not audit the underlying fund holdings.
Key caveats
- Not a dollar peg: Do not treat USYC as a 1:1 dollar stablecoin for payments.
- Yield and rate risk: Its value depends on short-term interest rates and fund performance.
- Access restrictions: It is oriented toward institutional/eligible users.
- No public status page was found.
How it fits Circle's stack
USYC is positioned as an institutional cash-management leg that can move between yield-bearing exposure and Circle's dollar stablecoins, making it a building block for treasuries rather than a spending token. Our lower 5.97 composite is a direct consequence of scoring against a $1 peg; read alongside its market scale, it is better judged as a yield product than as a stablecoin.
Who is it for?
USYC fits institutions and sophisticated users seeking tokenized, yield-bearing dollar exposure and on-chain treasury management. It is not appropriate for anyone expecting a stable $1 medium of exchange.