Haycen, a company focused on trade financing, secured a stablecoin issuance license from the Bermuda Monetary Authority (BMA), the company said Friday.
The Digital Asset Business (M) license allows Haycen to issue and manage 1:1 collateralized stablecoins in multiple currencies, with provisions for yield-bearing products.
The company is targeting B2B markets, regulated entities and non-bank lenders, which it says remain underserved in global trade and financing.
Stablecoin values are tied to assets like the U.S. dollar or gold. They play a major role in cryptocurrency markets providing, among other things, a payment infrastructure, and are also used to transfer money internationally. The sector has a market cap of about $280 billion, CoinGecko data show, and is dominated by Tether’s USDT and Circle Internet’s USDC.
“This is a key moment in Haycen’s evolution, and we are proud to be part of Bermuda’s blockchain-driven future,” founder and CEO Luke Sully said in the release.
“The regulatory clarity offered by the BMA provides us with the foundation to build and scale innovative stablecoin solutions that bring real value to businesses across the world.”
Haycen plans to focus its offerings on cross-border trade finance, a sector Sully described as “largely off the radar” for banks despite trillions of dollars in annual liquidity needs.
He said the company’s goal is to provide institutions and corporates with more control over cash flows and lower the cost of capital. Haycen’s stablecoins, including a British pound-denominated token, are fully collateralized at all times.
Earlier this year, Haycen started working with Northern Trust, which serves as its fiat custodian and money market fund partner. It also received backing from the U.K. government’s National Security Strategic Investment Fund (NSSIF).
Read more: Northern Trust to Provide Custody, Cash Management Services for Stablecoin Issuer Haycen