Circle USYC Overtakes BlackRock BUIDL as Tokenized Treasury Market Hits $11B

Circle's tokenized U.S. Treasury fund USYC has grown to $2.2 billion in assets under management, overtaking BlackRock's BUIDL fund which holds approximately $2 billion. The leadership change comes as the total tokenized government bond market hit a record $11 billion.

How USYC Surpassed BUIDL

The primary growth driver for USYC was its integration with BNB Chain, where the token serves as off-exchange collateral for institutional derivatives trading on Binance. Since its launch in July, USYC supply on BNB Chain reached $1.84 billion — over 80% of the fund's total supply.

Institutional investors can hold USYC through Binance Banking Triparty or the Ceffu custody platform. This structure allows them to earn yield from government bonds while simultaneously using the tokens as trading collateral.

BlackRock's Declining Share

BlackRock's BUIDL, created in partnership with tokenization platform Securitize, once dominated the market with a 46% share in May 2024. However, growing competition has reduced it to 18%. New entrants with attractive terms have redistributed investor capital across the market.

The Role of Hashnote and Circle

Circle acquired Hashnote — the original issuer of USYC — in early 2025 for $1.3 billion. This deal gave Circle direct access to the tokenized treasury market, complementing its stablecoin business with USDC. Thanks to large-scale distribution through Binance, USYC quickly accumulated volume.

Why the Market Is Growing Now

Analysts note that a significant portion of capital inflows occurred during the crypto market downturn in January 2026. Investors redirected funds from volatile assets into tokenized bonds for stable returns. Growth is also fueled by demand for onchain collateral in derivatives trading.

This trend signals the maturation of DeFi infrastructure: institutional players are increasingly choosing blockchain rails over traditional financial intermediaries. The broader tokenized real-world assets (RWA) market has surpassed $30 billion, with Treasury bonds remaining the most popular segment.

What's Next

Competition in the tokenized bond market continues to intensify. BlackRock, despite losing the lead in this segment, remains the world's largest asset manager and recently launched an Ethereum staking ETF. Circle, meanwhile, is strengthening its position as a full-fledged crypto-financial platform that extends beyond stablecoins.