Circle's USYC Surges Past BlackRock's BUIDL to Dominate Tokenized Treasury Market

Key Highlights

Table of Contents

Circle’s USYC token has reached $2.2 billion in value, surpassing BlackRock’s BUIDL to become the dominant tokenized U.S. Treasury offering
BlackRock’s BUIDL fund has experienced a market share decline from its 46% high point to approximately 18%
Binance integrated USYC as off-exchange collateral on BNB Chain, contributing to $1.84 billion of USYC’s total supply on the network
The tokenized U.S. Treasury sector has reached an all-time high of $11 billion, representing a 27% year-to-date increase
Market expansion intensified during January’s crypto market correction as investors sought yield-generating onchain instruments

In a significant shift within the tokenized finance landscape, Circle’s USYC token has claimed the top position as the world’s largest tokenized U.S. Treasury offering, displacing BlackRock’s BUIDL fund from its leading position. This development signals a pivotal moment in the rapidly evolving market for blockchain-based traditional financial instruments.

According to RWA.xyz data, USYC has accumulated approximately $2.2 billion in total supply, edging past BlackRock’s USD Institutional Digital Liquidity Fund, which currently maintains around $2 billion in assets.

Tokenized U.S. Treasury market (RWA.xyz) — Source: RWA.xyz

Circle made its entry into the tokenized fund sector in early 2025 through its acquisition of Hashnote, the original creator of USYC. The financial instrument provides investors with access to U.S. Treasury yields while maintaining their holdings on blockchain infrastructure.

BlackRock introduced BUIDL in early 2024 through a collaboration with Securitize, a tokenization platform. During its zenith in May 2024, BUIDL commanded a 46% portion of the tokenized Treasury sector. However, that dominance has contracted to roughly 18% amid increasing competition.

Tokenized Treasuries function by converting U.S. government debt into digital tokens on blockchain platforms. This enables investors to generate yield while simultaneously utilizing the tokens as trading collateral — a capability not readily available with conventional Treasury investments.

Binance’s Role in USYC’s Expansion

Much of USYC’s recent momentum can be attributed to its integration with Binance. The cryptocurrency exchange incorporated USYC as off-exchange collateral for institutional derivatives transactions on BNB Chain in July 2024.

This arrangement allows USYC to be maintained through Binance Banking Triparty or Ceffu, Binance’s institutional custody service. Following this implementation, USYC’s circulation on BNB Chain has expanded to $1.84 billion.

Circle’s USYC just became the world’s largest tokenized MMF.
Tokenized treasuries and repo as collateral is a major emerging use case and we are proud of how quickly this has grown.
What’s especially powerful about USYC is the ability to 24/7/365 create and redeem it using… https://t.co/iedxCbw0vG
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) March 13, 2026

Circle CEO Jeremy Allaire described the utilization of tokenized Treasuries as collateral as “a major emerging use case” in a statement on X Friday.

The capacity to generate yield while simultaneously deploying an asset as trading collateral is recognized as a compelling benefit compared to holding stablecoins or cash, which generally produce no returns.

Market Reaches Unprecedented Heights

The overall tokenized U.S. Treasury sector has achieved a milestone of over $11 billion, based on RWA.xyz tracking. This figure reflects a 27% expansion, equating to approximately $2.5 billion in new value, since the beginning of 2026.

The growth trajectory accelerated throughout the cryptocurrency market decline in January. This trend indicates that certain investors redirected capital into tokenized Treasuries to secure consistent returns while maintaining a position to reenter crypto markets.

Unlike conventional financial systems, blockchain-based tokens enable immediate settlement, verifiable reserves, and continuous market access — characteristics that are attracting institutional participants.

Securitize, the partner issuer of BUIDL, had not provided a response to inquiries at the time of publication.

As of mid-March 2026, USYC occupies the leading position in a market that has expanded beyond $11 billion in aggregate assets.