Circle’s USYC tokenized U.S. Treasury fund has climbed to about $2.2 billion in supply, overtaking BlackRock’s BUIDL fund as demand grows for onchain yield and collateral in the crypto market.
The rapidly expanding tokenized Treasury sector now has a new front-runner.
Circle, the firm behind 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 increase places USYC ahead of BlackRock’s USD Institutional Digital Liquidity Fund, which was launched in partnership with tokenization platform Securitize and currently holds around $2 billion in assets. BUIDL’s share of the market has fallen to about 18%, down from a peak of roughly 46% in May as competition in the sector intensifies.
Tokenized real-world assets such as Treasury bills and money-market funds are becoming increasingly popular among crypto traders and institutional investors. These blockchain-based instruments provide yield-generating collateral and a way to hold funds onchain while benefiting from faster settlement, transparent reserves and 24/7 access compared with traditional financial systems.
Another benefit is improved capital efficiency: Treasury-backed tokens allow investors to earn interest while using the assets as collateral for trading strategies, potentially offering more flexibility than simply holding stablecoins or cash.
Circle entered the tokenized Treasury 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.
Tokenized Treasury market surges
Data suggests a significant portion 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 the arrangement, USYC can be held with partner banks through Binance Banking Triparty structures or through Ceffu, Binance’s institutional custody platform.
Since its rollout in July, USYC supply on BNB Chain has expanded 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 said Friday in a post on X.
The broader tokenized Treasury market is also experiencing strong growth, reaching a record value of more than $11 billion, according to RWA.xyz. The sector has added around $2.5 billion in value, roughly 27%, since the start of the year.
Expansion accelerated during January’s crypto market downturn, indicating that some investors may be allocating capital to tokenized Treasuries to earn steady yields while waiting for new opportunities in digital assets.
