Hashnote recently announced that its yield-bearing US Yield Coin (USYC) is now available on the Canton Network. By unlocking the unique privacy properties of Canton for USYC, holders will be able to hold and deliver collateral across the Canton Network without anyone other than the issuer and the holder knowing.

What is USYC?

USYC is the on-chain representation of Hashnote’s Short Duration Yield Fund (SDYF), which invests in short-term US Treasury Bills and performs repo / reverse-repo activity as the underlying asset of the USYC token, driving short-term risk-free rate returns.

Why Canton? It’s USYC…with privacy

Bringing the fund’s native USYC token to Canton Network further enhances the underlying benefits of tokenized assets for institutional players, blending the unique privacy properties of Canton, with the interoperability capabilities enabled by the network’s Global Synchronizer. USYC on Canton means privacy-enabled transactions for investors and liquidity providers who benefit from granular control over confidentiality and permissions, as well as the ability to utilize USYC as a highly liquid, yield-bearing asset for collateral or intraday margin management.

“What particularly stands out for us, and for many of our clients, is the privacy of your assets and transactions when using Canton, which can be crucial for trading use cases. The setup allows us to reduce counterparty and settlement risks and optimize capital efficiency without sacrificing privacy. Furthermore, USYC is fully composable on the Canton Network, so participants can create additional utility around USYC by including it in their trading, cash, and risk management workflows.”

Leo Mizuhara
Founder and CEO, Hashnote

Leveraging Canton Coin

The Canton Network’s Global Synchronizer and Canton Coin went live in July 2024, and provide the blockchain interoperability backbone for the Canton Network, connecting a wide range of applications and participating financial institutions, asset managers, banks, custodians, exchanges, and stablecoin issuers. It enables secure cross-chain atomic transactions to unlock the benefits of direct asset and value transfer akin to defi ecosystems, but with the crucial enterprise-grade privacy and controls compatible with regulatory requirements for institutional participants.

As part of the collaboration, Hashnote now supports Canton Coin rewards generated through its connectivity to the Global Synchronizer. This connection ensures that Hashnote clients benefit from a truly unified system, where Canton Coin facilitates seamless, Canton-native operations across participants and applications worldwide, 24/7. To further enhance value for USYC investors, Hashnote will share Canton Coin rewards directly with investors, allowing users to fully capitalize on the advantages of the Canton Network and gain additional rewards when holding USYC.

Hashnote USYC leverages Digital Asset’s tokenization suite and standards

Hashnote used Digital Asset’s Canton tokenization utility to bring USYC to the Canton Network. The utility provides a growing suite of smart contract templates that allow clients to develop apps for asset registry, credentials management, and trading of regulatory grade real world assets on the Canton Network, leveraging the Global Synchronizer and Canton Coin. These standard smart contract templates and an accompanying UI also allow app users to quickly create, deploy and transfer assets, as well as to strictly manage verified credentials and permissioning.

“Yield-bearing asset distribution through blockchain networks has increased institutional investor access to tokenized assets but to realise the full potential of this innovation underlying networks need to ensure investors can trade assets without exposing sensitive information. USYC on Canton addresses the fundamental desire for investors and liquidity providers to maintain privacy, for example when delivering collateral, and opens up connectivity with Canton Network’s diverse ecosystem of participants, applications and tokenized assets.”

Yuval Rooz
CEO and co-founder, Digital Asset

“We at Hashnote fully align with this vision, as we see USYC primarily as a collateral yield-bearing token that integrates effortlessly with other digital assets on Canton. The Canton Network significantly enhances the efficiency of this process, especially for trading firms prioritizing privacy in their operations. Canton Coin provides a great optional utility that can be used to ensure the smooth payment of fees and to further increase the attractiveness of the product for investors,” concludes Hashnote’s Mizuhara.

For full info on Hashnote USYC on the Canton Network - see the USYC on Canton factsheet here.

For details on how to interact with assets like Hashnote USYC on Canton, bring your own assets to Canton, or to build new applications on the Canton Network:

1. Request more information
2. Reach out directly to Hashnote
3. Reach out to a super validator, as listed in the Canton Network ecosystem, or contact a member of the Global Synchronizer Foundation