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
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)
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
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:
Fully Collateralized: No leverage, no fractional reserve. Portfolio composed entirely of reverse repos.
Low Risk: Counterparties clearing through DTCC (AA- rated). Experienced fixed-income investment team.
Transparent: Holdings verifiable on-chain. Independent audits by Cohen & Co. Fund administration by NAV Consulting.
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: https://docs.usual.money/usual-products/usd0-stablecoin/rwa-collateral
Hashnote: https://www.hashnote.com
Etherscan — USYC: https://etherscan.io/token/0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b
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.
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