# USYC — Hashnote > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USYC is the tokenized share of the Hashnote Short Duration Yield Fund, a Cayman Islands Mutual Fund investing exclusively in reverse repurchase agreements and US Government securities. It is the primary collateral asset backing USD0. The fund is regulated under both the Cayman Islands Monetary Authority (CIMA) and the US Commodity Futures Trading Commission (CFTC). Custody is provided by The Bank of New York Mellon, with Marex as prime broker, NAV Consulting as fund administrator, and Cohen & Co as statutory auditor. USYC tokens are standard ERC-20 on Ethereum. In January 2025, Circle (issuer of USDC) completed its acquisition of Hashnote. The fund continues to operate under its existing regulatory framework and service provider chain. USYC remains the single largest direct RWA collateral source for USD0, representing approximately 42.7% of the collateral composition as of mid-2025. *** ## Key Facts | Parameter | Detail | | ---------------------- | ---------------------------------------------------------------------------- | | **Full name** | Hashnote Short Duration Yield Fund | | **Token / Ticker** | USYC | | **Legal structure** | Cayman Islands Mutual Fund | | **Eligibility** | Institutional / permissioned (KYC/KYB required) | | **Base currency** | USD | | **Chain** | Ethereum (ERC-20) | | **Valuation** | NAV-based; on-chain pricing | | **Custody** | The Bank of New York Mellon (BNY Mellon) | | **Prime broker** | Marex | | **Banking** | Customers Bank | | **Fund administrator** | NAV Consulting | | **Auditor** | Cohen & Co | | **Regulatory status** | CIMA Licensed (Cayman Islands); CFTC Registered (US Commodity Pool Operator) | | **Parent company** | Circle Internet Financial (acquired January 2025) | *** ## Investment Mandate & Portfolio * **Universe:** Reverse repurchase agreements and US Government securities. * **Duration:** Short-duration instruments only. Portfolio duration maintained well below the 0.33-year maximum threshold required by Usual Protocol. * **Objective:** Capital preservation with steady yield generation. Minimal market and credit risk exposure. * **Credit quality:** Reverse repos conducted with counterparties clearing through the Depository Trust & Clearing Corporation (DTCC, AA- rated). * **Restrictions:** No leverage, no fractional reserve practices. Fully collateralized at all times. *** ## Subscriptions / Redemptions (Primary) | Parameter | Detail | | ------------------------- | ---------------------------------------------------------------------- | | **Settlement** | T+0 to T+1 | | **Redemption currencies** | USDC, PYUSD | | **On-chain transactions** | Instant during market hours | | **Custody model** | Fully segregated; assets held separately from Hashnote's balance sheet | Fast settlement (T+0 to T+1) is a critical property for maintaining USD0 peg stability and enabling efficient arbitrage between primary and secondary markets. *** ## Fees Fund-level fee details are governed by the fund's offering documents. No public fee schedule is disclosed in protocol documentation. Usual Protocol's tokenizer evaluation framework requires that fees be reasonable and not materially erode returns. *** ## Addresses & Oracles ``` USYC Token (Ethereum).......... 0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b ``` For oracle/price feed integrations, refer to Hashnote documentation or the Usual Protocol ClassicalOracle at `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` which handles USYC collateral valuation. *** ## Key Risks (Summary) * **Concentration risk:** As the primary collateral for USD0, heavy reliance on Hashnote introduces single-provider concentration risk. Mitigated by the protocol's ongoing collateral diversification strategy (M0, Spiko USTBL, USDC). * **Regulatory risk:** Changes in CIMA or CFTC regulatory frameworks could impact fund operations or redemption processes. * **Operational risk:** Dependence on the service provider chain (BNY Mellon custody, Marex prime brokerage, Customers Bank, NAV Consulting administration). * **Redemption risk:** T+0 to T+1 settlement assumes normal market conditions. Stressed or dislocated markets could extend settlement times. * **Ownership change risk:** Circle's acquisition of Hashnote introduces potential changes in operational practices, fee structures, or strategic direction. * **Counterparty chain risk:** Failure of the tokenizer, fund manager, or custodian bank could impact access to collateral assets. Mitigated by the bankruptcy-remote vehicle structure and fully segregated custody. *** ## Collateral Selection Rationale Hashnote USYC was the first collateral asset made eligible within Usual Protocol. Per the litepaper, it satisfied all four due diligence criteria: 1. **Fully Collateralized:** No leverage, no fractional reserve. Portfolio composed entirely of reverse repos. 2. **Low Risk:** Counterparties clearing through DTCC (AA- rated). Experienced fixed-income investment team. 3. **Transparent:** Holdings verifiable on-chain. Independent audits by Cohen & Co. Fund administration by NAV Consulting. 4. **Liquid:** Overnight and short-duration instruments. Portfolio duration well below the 0.33-year threshold. T+0 to T+1 settlement. *** ## Quick Links * Usual Docs — RWA Collateral: * Hashnote: * Etherscan — USYC: *** ## Disclaimer This factsheet is informational and does not constitute investment advice or a solicitation. It reflects publicly available data as of the date indicated. Consult the fund's offering documents and your own advisers before making any investment decision. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.usual.money/resources-and-ecosystem/fact-sheets/collateral-assets/usyc-hashnote.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.