ICE partners with Circle to bring $30bn USDC, tokenised funds into global markets
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Intercontinental Exchange (ICE), the $70 billion operator of the New York Stock Exchange, is taking a major step towards integrating stablecoins and tokenised funds into the core of traditional finance.
The company has entered into an agreement with Circle Internet Financial to explore the use of its USDC stablecoin and USYC, a tokenised money market fund, across ICE’s trading and market infrastructure.
The collaboration signals a shift in how legacy finance views blockchain-based digital assets—not just as speculative tools, but as potentially foundational components of modern market plumbing.
ICE tests stablecoins in trading and clearing
The ICE-Circle agreement will focus on evaluating where and how USDC and USYC can be used across ICE’s global network of exchanges, clearinghouses, and data services.
These include some of the most critical components of global capital markets, such as the NYSE derivatives exchange and ICE Clear.
USDC, currently the second-largest stablecoin with a market cap exceeding $30 billion, is pegged 1:1 to the US dollar and backed by short-term US government securities and cash-equivalent reserves.
The token is issued by Circle, a regulated US financial technology company.
USYC, on the other hand, is a newer offering—a tokenised version of a money market fund that Circle acquired through its purchase of asset manager Hashnote.
Unlike USDC, which is designed for payments and on-chain settlements, USYC aims to give institutional investors exposure to regulated, interest-bearing short-term US Treasury instruments, using blockchain rails.
Institutional demand for tokenised assets grows
ICE’s partnership with Circle highlights growing momentum among large financial players to incorporate blockchain-based assets.
The move follows similar experiments from other giants in the sector. CME Group, a major ICE competitor, is also exploring blockchain applications, while Fidelity has developed its own stablecoin framework and tokenised asset initiatives.
This institutional trend is being driven in part by the rapid rise in tokenisation of real-world assets (RWAs), which Boston Consulting Group forecasts could become a $16 trillion market by 2030.
From bonds and equities to money market funds, financial institutions are actively investigating how tokenised versions of traditional securities can increase efficiency, reduce costs, and enable 24/7 settlement.
Circle, which previously partnered with BlackRock to support the reserve management for USDC, has been a central player in this space.
Its acquisition of Hashnote and subsequent launch of USYC signals its intent to expand from payments into broader tokenised capital markets.
Regulatory checks before product launch
While the agreement between ICE and Circle does not yet involve the rollout of specific products, both firms have confirmed plans to evaluate legal, operational, and regulatory requirements across jurisdictions before proceeding further.
Any launch of financial products based on USDC or USYC would need approval from relevant regulatory bodies, including the SEC and CFTC in the US.
The potential applications span multiple segments of the financial infrastructure.
For example, ICE could use USDC to enable near-instant settlement on certain trades or clearing operations, bypassing traditional banking rails.
Similarly, USYC could offer an on-chain alternative to standard short-term treasury exposure, with possible integration into ICE’s clearing platforms or institutional custody solutions.
USDC and USYC may change settlements
If successfully implemented, ICE’s adoption of USDC and USYC would mark one of the most significant integrations of digital tokens into legacy market infrastructure to date.
It could also pave the way for other exchanges and market operators to adopt similar tools, particularly as regulators around the world issue clearer guidance on digital asset frameworks.
Circle’s stablecoin technology is already being used across various DeFi and TradFi applications, but its entry into ICE’s ecosystem indicates broader institutional validation.
According to on-chain data, USDC currently settles over $100 billion in monthly transaction volume across Ethereum and other supported blockchains.
For ICE, which processes trillions of dollars in derivatives and securities trades each month, incorporating stablecoins and tokenised funds could lead to a new phase of operational efficiency—while for Circle, the partnership provides access to some of the deepest liquidity pools in global finance.
The post ICE partners with Circle to bring $30bn USDC, tokenised funds into global markets appeared first on Invezz
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