Tokenized Treasuries Hit $11B Record as Circle Moves Ahead of BlackRock

Circle’s USYC tokenized U.S. Treasury fund has grown to roughly $2.2 billion, moving ahead of BlackRock’s BUIDL fund as investors increasingly turn to onchain assets for yield and collateral.

The fast-expanding tokenized Treasury sector now has a new market leader.

Circle, the company behind the USD Coin, has become the largest provider of tokenized U.S. Treasury exposure after the supply of its USYC token climbed to about $2.2 billion, according to figures from RWA.xyz.

That increase puts USYC ahead of BlackRock’s USD Institutional Digital Liquidity Fund, which was launched in partnership with tokenization platform Securitize and currently manages around $2 billion in assets. BUIDL’s market share has declined to about 18%, down from a peak of 46% in May as new competitors have entered the market.

Tokenized real-world assets such as Treasury bills and money-market funds are gaining momentum among crypto traders and institutional investors. These blockchain-based tokens provide yield-bearing collateral and a way to hold cash onchain, while also offering faster settlement, transparent reserves and round-the-clock accessibility compared with traditional financial systems.

Another key advantage is that Treasury-backed tokens can generate interest while simultaneously being used as collateral in trading strategies, potentially improving capital efficiency relative to holding stablecoins or cash.

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

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

Market momentum builds

Data indicates that much of USYC’s recent growth has been driven by activity on BNB Chain, where crypto exchange Binance introduced the token as off-exchange collateral for institutional derivatives trading.

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

Since its launch on BNB Chain in July, the supply of USYC on the network has climbed to approximately $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 quickly, reaching a new record of more than $11 billion in total value, according to RWA.xyz. The sector has added around $2.5 billion, or roughly 27%, since the beginning of the year.

Growth picked up during January’s crypto market downturn, suggesting some investors may be temporarily allocating funds to tokenized Treasuries to earn steady yield while waiting for new opportunities in digital assets.