Circle Surpasses BlackRock in Tokenized Treasuries as Market Reaches Record $11 Billion

Circle’s USYC tokenized U.S. Treasury fund has surged to about $2.2 billion in supply, overtaking BlackRock’s BUIDL fund as demand rises for onchain yield and collateral among crypto and institutional investors.

The rapidly expanding market for tokenized U.S. Treasuries now has a new leader.

Circle, best known for issuing the USD Coin (USDC), has become the largest provider of tokenized Treasury exposure after its USYC token climbed to roughly $2.2 billion in supply, according to data from RWA.xyz.

The growth pushed USYC ahead of BlackRock’s USD Institutional Digital Liquidity Fund, which was launched with tokenization specialist Securitize and currently holds around $2 billion in assets. BUIDL’s market share has fallen to about 18% from a peak of roughly 46% in May as new competitors enter the space.

Tokenized real-world assets such as Treasury bills and money-market funds are increasingly popular among crypto traders and institutional investors. These blockchain-based tokens offer yield-generating collateral and a way to hold cash onchain while benefiting from near-instant settlement, transparent reserves and 24/7 access—advantages that traditional financial infrastructure typically lacks.

Treasury-backed tokens also provide an additional benefit: investors can earn interest while using the assets as collateral in trading strategies, potentially improving capital efficiency compared with simply holding stablecoins or idle cash.

Circle entered the tokenized fund market after acquiring Hashnote, the issuer of USYC, in early 2025.

A spokesperson for Securitize did not respond to a request for comment by press time.

A booming market

Data suggests much of USYC’s recent growth is tied to activity on BNB Chain, where crypto exchange giant Binance introduced the token as off-exchange collateral for institutional derivatives trading.

Under the arrangement, USYC can be held with partner banks through Binance Banking Triparty or with Ceffu, Binance’s institutional custody service.

Since the rollout in July, the supply of USYC on BNB Chain has climbed to about $1.84 billion, according to the data.

“Tokenized treasuries and repo as collateral is a major emerging use case and we are proud of how quickly this has grown,” Jeremy Allaire said Friday in a post on X.

The broader tokenized Treasury sector is also expanding rapidly, reaching a record value of more than $11 billion, according to RWA.xyz. The market has added roughly $2.5 billion, or about 27%, since the beginning of the year.

Growth accelerated during January’s crypto market downturn, suggesting some investors shifted capital into tokenized Treasuries to earn steady yields while waiting for opportunities to redeploy funds back into digital assets.