Circle's USYC Overtakes BlackRock's BUIDL as Tokenized Treasury Market Hits $11 Billion

Circle, widely recognized as the issuer of the USDC stablecoin, has claimed the top spot in the fast-growing tokenized U.S. Treasury market. Its USYC token has surged to approximately $2.2 billion in supply, surpassing BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), which currently manages around $2 billion in assets, according to RWA.xyz data. BUIDL, co-issued with tokenization firm Securitize, has seen its market share drop to 18% from a peak of 46% in May 2024 as new competitors entered the space.

Circle's entry into tokenized funds followed its acquisition of Hashnote, USYC's original issuer, in early 2025. A significant portion of USYC's recent growth is tied to activity on BNB Chain, where Binance introduced the token as off-exchange collateral for institutional derivatives trading. Since that July launch, USYC's supply on BNB Chain has grown to $1.84 billion. Investors can hold the token through Binance Banking Triparty or Ceffu, Binance's institutional custody platform.

Tokenized real-world assets like Treasury bills and money-market funds are gaining strong momentum among both crypto traders and institutional investors. These blockchain-based instruments offer distinct advantages over traditional finance, including near-instant settlement, transparent reserves, and 24/7 accessibility. They also allow investors to earn yield while simultaneously using assets as trading collateral, boosting overall capital efficiency compared to holding cash or stablecoins.

The broader tokenized Treasury market has reached a record high of over $11 billion, reflecting roughly 27% growth since the beginning of the year. Notably, expansion accelerated during January's crypto market downturn, suggesting that investors are increasingly turning to tokenized Treasuries as a stable, yield-bearing option while awaiting better entry points in digital assets. Circle CEO Jeremy Allaire called tokenized Treasuries and repo as collateral "a major emerging use case."