Reap Adds USYC Tokenized Treasury to Payment Platform
Fintech firm Reap has integrated USYC, a tokenized U.S. Treasury product, into its stablecoin payments platform for global businesses. The move expands yield-bearing infrastructure for companies transacting across borders using digital assets.
Yuri Konnov
By mid-2026, USYC had grown to approximately $3 billion in assets under management, making it the largest tokenized U.S. Treasury product onchain by AUM, according to RWA.xyz data cited by Eco.com. CoinDesk reported the fund held approximately $2.9 billion in circulation as of May 2026, describing it as among the largest tokenized funds in the market. The fund is structured as an offshore feeder vehicle restricted to non-U.S. persons and qualified purchasers under Regulation S of the Securities Act of 1933 — a distinction that separates it from registered U.S. money market funds and shapes which of Reap's clients can access it through the platform.
The regulatory backdrop for the integration is defined in part by an SEC statement issued on January 28, 2026, which clarified that tokenized securities remain subject to existing federal securities laws regardless of blockchain format. The SEC's guidance identified two categories of tokenized securities: those tokenized by or on behalf of the original issuer, and those tokenized by unaffiliated third parties. USYC, as Circle's official USYC product page describes it, is designed to provide institutional-grade, yield-bearing collateral with near-instant liquidity onchain — a structure that places it squarely within the SEC's first category.
The announcement arrives against a backdrop of rapid growth in yield-bearing digital instruments. According to the PR Newswire release picked up by The Manila Times, yield-bearing stablecoins grew from $9.5 billion at the start of calendar year 2025 to more than $20 billion by year-end 2025. The same release cited a BCG-Ripple 2025 projection that the tokenized asset market could expand from $0.6 trillion to $18.9 trillion by 2033, representing a compound annual growth rate of 53%. Both figures are drawn from third-party research aggregations cited in the press release rather than from primary tracker data, and should be read in that context.
Reap's integration also carries a corporate dimension that the announcement does not address directly. Payward, the parent company of Kraken, agreed in May 2026 to acquire Reap for up to $600 million, with the transaction expected to close in the second half of 2026, according to Banking Dive's coverage of the Payward acquisition. If the deal closes as structured, USYC distribution through Reap Direct would operate within Kraken's broader institutional client network — a scale effect the current announcement does not quantify.
The press release does not disclose which specific corporate clients have already deployed USYC through Reap Direct, the total notional value of idle balances currently eligible for the product, or the fee structure Reap applies to yield earned through the integration. It does not confirm regulatory approval from any specific jurisdiction for the combined payments-and-yield product, nor does it describe the redemption mechanics or liquidity windows available to clients during periods of elevated Treasury market volatility.
What the announcement establishes concretely is that USYC is now accessible as a yield-bearing instrument within Reap's existing stablecoin payments infrastructure, with Circle's USDC redemption rails providing the settlement layer. The press release does not identify a minimum deployment threshold for corporate clients below the fund's $100,000 access floor, nor does it specify whether Reap aggregates client balances to meet that minimum or requires each client to qualify independently.
