NYSE-Parent ICE to Explore New Products With Circle’s Stablecoin, Tokenized Fund

Intercontinental Exchange, the mother or father firm of the New York Stock Exchange, mentioned it plans to discover utilizing Circle’s stablecoin and tokenized asset to develop new merchandise, becoming a member of a roster of U.S. conventional monetary giants pushing into crypto below the Trump administration.

According to an settlement introduced on Thursday, the 2 companies will take a look at how Circle’s USDC stablecoin and USYC tokenized cash market fund may very well be built-in into derivatives exchanges, clearinghouses and different companies.

“We believe Circle’s regulated stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the U.S. dollar,” mentioned Lynn Martin, president of the New York Stock Exchange mentioned in an announcement. “We are excited to explore the potential use cases for USDC and USYC across ICE’s markets.”

USDC is the second-largest stablecoin, trailing Tether’s USDT. It has a $60 billion market capitalization and is fully backed by U.S. government securities and cash-equivalent assets. USYC is a money market fund token issued by Hashnote, which was acquired by Circle earlier this year.

ICE is the latest example of U.S. financial behemoths delving into applying digital assets, stablecoins and tokenization as regulatory headwinds over the crypto industry subside under the Trump administration.

In the past few days, asset manager Fidelity Investments filed to launch a tokenized cash market fund and is reportedly engaged on issuing a stablecoin, whereas derivatives trade CME Group mentioned it is testing tokenization with Google Cloud’s private distributed ledger, aiming to launch new services next year. Tokenization is the process of placing financial instruments like bonds, funds and other securities on blockchain rails to pursue operational gains.

Martin foreshadowed the agency’s potential push into digital belongings final May at a Consensus 2024 panel dialogue, saying that the trade would think about providing crypto buying and selling if the regulatory image within the U.S. have been clearer.