Circle’s USYC tokenized U.S. Treasury fund has expanded to around $2.2 billion, overtaking BlackRock’s BUIDL fund as demand grows for onchain yield and collateral among crypto traders and institutional investors.
The fast-growing tokenized Treasury sector now has a new leader.
Circle, widely known as the issuer of the USD Coin, has become the largest provider of tokenized U.S. Treasury exposure after its USYC token reached roughly $2.2 billion in supply, according to data from RWA.xyz.
The milestone puts USYC ahead of BlackRock’s USD Institutional Digital Liquidity Fund, which was launched with digital asset tokenization firm Securitize and currently holds about $2 billion in assets. BUIDL’s market share has dropped to roughly 18% from a peak near 46% in May as more competitors enter the tokenized Treasury space.
Tokenized real-world assets such as Treasury bills and money-market funds are gaining traction across the crypto ecosystem. Traders and institutions increasingly use these blockchain-based tokens as yield-bearing collateral or as a place to hold funds onchain. Compared with traditional financial infrastructure, tokenized assets offer near-instant settlement, transparent reserves and 24-hour market access.
Another advantage is capital efficiency: investors can earn interest on Treasury-backed tokens while simultaneously using them as collateral in trading strategies, a feature that may be more efficient than holding stablecoins or idle cash.
Circle entered the tokenized Treasury market after acquiring Hashnote, the issuer of USYC, in early 2025.
A spokesperson for Securitize did not immediately respond to a request for comment.
Rapid market expansion
Data suggests a large portion of USYC’s recent growth is tied to activity on BNB Chain, where crypto exchange Binance introduced the token as off-exchange collateral for institutional derivatives trading.
Under the structure, USYC can be held with partner banks through Binance Banking Triparty arrangements or with Ceffu, Binance’s custody platform for institutional clients.
Since its introduction in July, USYC supply on BNB Chain has climbed to roughly $1.84 billion.
“Tokenized treasuries and repo as collateral is a major emerging use case and we are proud of how quickly this has grown,” Jeremy Allaire wrote Friday on X.
The broader tokenized Treasury market is also expanding rapidly, reaching a record high above $11 billion, according to RWA.xyz data. The sector has grown by about $2.5 billion, or roughly 27%, since the start of the year.
Growth accelerated during January’s crypto market downturn, suggesting some investors temporarily shifted funds into tokenized Treasuries to earn steady yield while waiting for opportunities to redeploy capital into digital assets.
