Circle Yield. Built Differently.

As of November 17, 2022, Circle Yield is not accepting new loans. We are evaluating future updates to the program.

#5 of a series on Trust and Transparency, by Circle’s CFO, Jeremy Fox-Geen.

We built Circle Yield to meet the expectations of our most demanding customers. During these unprecedented times, it has continued to perform - all margin calls have been met and neither Circle nor any customer has incurred any loss. Yet we recognize that some may wish to minimize their exposure to digital assets at this time. So we have offered all customers with active loans the opportunity to withdraw their USDC from Circle Yield, early, without penalty.

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Just like billions of people use the internet to exchange trillions of bytes of data each day, we believe that billions of people will eventually use the internet to exchange trillions of dollars of value every day, near-instantly, and nearly for free. This will benefit everyone, releasing billions of dollars of trapped value, reducing economic rents and accelerating financial services innovation and inclusion.

Yet much of this future financial infrastructure of programmable money has yet to be invented, nor have the new forms of commerce it will enable. We intend to play a meaningful role, building on the products and services we offer our customers today, and we aspire for well-regulated stablecoins like USDC to be foundational to this future. (For clarity, the USDC reserve is entirely separate from Circle’s other products and services, and is protected by laws and regulations — see Minimizing Risk).

One of those products is Circle Yield, our first treasury product, which we offer to businesses and accredited investors only — not retail consumers. Our lending customers lend us their USDC for a fixed term (1, 3, 6 or 12 months) for a fixed return. Our lending partners borrow that USDC for the same fixed term for a fixed cost. 

We built Circle Yield to meet the expectations of our most demanding customers - both crypto-native and non-crypto businesses alike. After all, when you (literally) give someone your money on the promise of a return, you had better trust to whom you have given it and understand the structure of the product itself. If that promise sounds too good to be true, well, it likely is too good to be true. You might start by asking: 1/ is it secured, 2/ is it full-reserve, 3/ is it regulated, 4/ is it legal? 

In response: 

1/ Circle Yield is overcollateralized, to offer our lenders meaningful security, with a perfected security interest in 125% BTC held at a third-party collateral agent, with twice-daily margin calls, seven days a week.

2/ It is built on a full-reserve model; funds are lent on a duration-matched basis, so they are available as scheduled when customers’ loans mature.

3/ It is regulated and supervised by the Bermuda Monetary Authority under the Bermuda Digital Asset Business Act, which provides a clear regulatory framework and prudential third-party oversight.

4/ It is issued in the U.S. as an unregistered security pursuant to Reg D under the Securities Act of 1933 in accordance with U.S. law.


Circle Yield launched in limited “early access” in late 2021 and, since its official launch in February 2022 as a self-service product through the Circle Account, it has grown to approximately $248 million as of June 30, 2022. We expect to continue to innovate in this space — following customer feedback we intend to launch an open term product later this year, giving customers the flexibility to lend and withdraw their USDC at will.

During these unprecedented times in the digital asset markets Circle Yield has performed as designed. All borrower margin calls have been met on time and Circle Yield remains overcollateralized. Neither Circle nor our customers have incurred any loss. As borrowing demand has fallen along with the turmoil in digital asset markets, our rates for new loans have followed. (The fundamentals of finance remain the fundamentals of finance.)

We recognize that some of our customers have concerns with any exposure to these markets during this time of turmoil. Hence we are offering all Circle Yield customers with active loans the opportunity to withdraw their USDC from Circle Yield, early, without penalty.

Circle’s products continue to deliver for our customers, and we remain excited by the opportunities that will be unleashed in this future of on-chain programmable money.

Continue reading our Trust & Transparency Series with #6 Why Being a U.S. Regulated Company Matters


*Circle Internet Financial, LLC, NMLS # 1201441, is a licensed provider of money transmission services. A full list of Circle’s licenses can be found here. 

Investments described in this communication are offered by Circle International Bermuda Limited (“Circle Bermuda”) to “accredited investors” only in accordance with Regulation D, Rule 506(c) of the Securities Act of 1933, as amended. Circle Internet Financial, LLC and Circle Bermuda (“Circle”) are not broker-dealers, do not give legal or accounting advice, and do not sell securities or give any investment advice. Investors should consider the investment objectives, risks, charges and expenses of any investments carefully before investing. The offering documents may be obtained by contacting us. Please read the offering documents carefully before you invest. The price of Bitcoin may fluctuate and your investment may also lose value.

Circle is not a bank; your Circle Account is not a bank account, and any funds are not insured by the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation or by any US or foreign government agency, insurance fund, person or entity. While Circle Bermuda is regulated by the Bermuda Monetary Authority for digital asset business, Circle Bermuda is not engaged in banking and deposit taking activities and is not regulated for these purposes. 

Rates are purely indicative and are subject to change pending availability, approval and market conditions. Not currently available in the following U.S. states: Alaska, New York, and Hawaii. 

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