Circle, the cryptocurrency firm behind the $48 billion USDC stablecoin, announced on Tuesday that it has acquired Hashnote, a company specializing in tokenized real-world assets (RWAs), in a move expected to bolster its offerings in the emerging tokenization market.

This acquisition, confirmed during the annual World Economic Forum in Davos, Switzerland, positions Circle to integrate USYC, a tokenized money market fund worth $1.3 billion, with its flagship stablecoin. The partnership also includes working with Cumberland DRW, a leading crypto market maker, to enhance liquidity and facilitate transactions involving USDC and USYC.

According to Circle CEO, Jeremy Allaire, this acquisition aligns traditional finance with the innovative capabilities of blockchain technology. “This is a huge unlock for a market that is increasingly being driven by institutional adoption,” Allaire stated, emphasizing the importance of evolving market structures in line with what is seen in traditional finance.

The synergy between stablecoins and tokenization is highlighted through this acquisition, as Circle aims to solidify its position in a competitive market where assets like treasury bills are increasingly being utilized as collateral in trading, promising transparency and efficiency in transactions.

Additionally, Circle’s plans to deploy USDC on the Canton Network, a blockchain designed for institutional use, will further facilitate seamless transfers between traditional and decentralized marketplaces.