Circle International Bermuda Limited, regulated by the Bermuda Monetary Authority (BMA), issues USYC. USYC represents an interest in a Cayman Islands-regulated fund licensed by the Cayman Islands Monetary Authority (CIMA).

Because USYC tokens represent fund shares, all token holders must complete onboarding, including identity verification (KYC/AML), to hold SDYF shares.

 

The fund administrator updates account balances in the SDYF share registry to reflect movements of the USYC token. 

 

Subscription Workflow

Once an investor is onboarded to SDYF,

• Their wallet address is added to the Whitelist.

• Permission is granted to hold, mint, or redeem USYC. Hashnote then transfers the investor's funds to its Prime Brokerage to invest into T-Bills and enter repo/reverse-repo agreements.

The investor's ownership of this fund is reflected on a blockchain via a permissioned ERC-20 smart contract. Hashnote mints into the investor’s wallet an amount of USYC tokens equivalent to the number of shares the investor has in the SDYF.

 

USYC tokens are minted based on the deposit amount divided by the current USYC price.

 

Redemption Workflow

 

Wallets on the Allowlist that have been granted permission can redeem USYC for USDC.

The client's redemption of the USYC token will be reflected in the fund registry by our fund administrator.

 

Ledger

SDYF shares are recorded by the Transfer Agent and mirrored onchain as ERC-20 tokens. 

 

The onchain representation introduces additional utility beyond what has been historically possible in traditional finance. Onchain representation adds capabilities that go beyond what traditional finance previously allowed.

 

Entitlements

Wallets linked to verified entities receive a Role that entitles them to hold and transfer the token.

 

The USYC Smart Contracts queries the Entitlements contract to verify the caller of a transaction has the appropriate permissions to perform a transfer or to receive the token.

 

Sanctions Check

In addition to checking that a wallet is permissioned,  the Entitlements contract screens wallets using an OFAC sanctions list via an onchain oracle maintained by Chainalysis.

System Halt

The Entitlements contract can also freeze all transactions involving USYC. As every type of action involving USYC verifies the Role of the sender, the Allowlist is positioned to revert all transactions. In the event there is suspicious activity, Hashnote has the ability to prevent any transaction from being completed.  Once resolved, the Allowlist is re-enabled and USYC can be transacted again.

 

USYC Teller

To help investors enter and exit their positions efficiently, we provide a Smart Contract Teller to facilitate investing in the fund and liquidating the asset onchain.

Subscription

Investors can use the Teller to subscribe to USYC with USDC 24/7/365.

For manual subscriptions with funds arriving after 2 PM EST, USYC shares are minted on the next business day.This price is calculated in advance based on the current interest rate generated by the fund.

 

Redemption

The Smart Contract Teller provides USYC holders near-instant USDC liquidity for USYC. Investors can redeem USYC through the Teller at the latest reported price at any time of the day and view the liquidity available on the USYC page in real time.

If you require more liquidity on a specific day, please contact our support team. For guaranteed same-day liquidity requests, please submit a customer support ticket.

 

 

Circle International Bermuda Limited is licensed to conduct digital asset business by the Bermuda Monetary Authority.