Key Takeaways
- USYC from Circle has expanded to $2.2 billion in value, dethroning BlackRock’s BUIDL as the premier tokenized U.S. Treasury offering
- BUIDL’s dominance has diminished significantly, with market share dropping from 46% at its height to approximately 18% currently
- Integration with Binance as collateral on BNB Chain has propelled USYC’s growth, with $1.84 billion of its total supply residing on that blockchain
- Tokenized U.S. Treasury products collectively reached an unprecedented $11 billion valuation, marking a 27% year-to-date surge
- January’s cryptocurrency market turbulence accelerated adoption as traders sought yield-generating blockchain-based alternatives
In a significant milestone for blockchain-based finance, Circle’s USYC token has claimed the top position among tokenized U.S. Treasury products globally, displacing BlackRock’s BUIDL fund from its previous leadership role. This development highlights the rapidly evolving landscape of traditional asset tokenization.
According to RWA.xyz analytics, USYC currently commands approximately $2.2 billion in total supply. This surpasses BlackRock’s USD Institutional Digital Liquidity Fund, which maintains roughly $2 billion in assets under management.
Circle made its entrance into the tokenized fund arena during the opening months of 2025 through its strategic acquisition of Hashnote, USYC’s founding issuer. The offering provides participants with access to U.S. Treasury returns while maintaining assets within blockchain infrastructure.
BlackRock introduced BUIDL during early 2024 through a collaboration with Securitize, a blockchain tokenization specialist. BUIDL achieved its zenith in May 2024, controlling 46% of the tokenized Treasury sector. However, increased competition has eroded this position to roughly 18% of the current market.
Tokenized Treasury products function by converting U.S. government obligations into blockchain-based digital tokens. Participants benefit from yield generation while simultaneously leveraging these tokens as collateral for trading activities — capabilities difficult to replicate with conventional Treasury investments.
Binance Integration Drives USYC Expansion
Much of USYC’s recent momentum stems from its Binance partnership. The cryptocurrency exchange incorporated USYC as approved off-exchange collateral for institutional derivative positions on BNB Chain during July 2024.
This arrangement enables USYC holdings through either Binance Banking Triparty services or Ceffu, Binance’s enterprise-grade custody solution. Following this integration, USYC’s presence on BNB Chain has ballooned to $1.84 billion.
In a Friday update on X, Circle CEO Jeremy Allaire characterized tokenized Treasury collateral usage as “a major emerging use case” gaining significant traction.
The dual benefit of earning returns while simultaneously deploying assets as trading collateral presents a compelling advantage compared to holding stablecoins or fiat currency, which traditionally generate zero yield.
Tokenized Treasury Sector Reaches New Heights
The aggregate tokenized U.S. Treasury ecosystem has achieved record territory, exceeding $11 billion according to RWA.xyz tracking. This milestone reflects a 27% appreciation, representing approximately $2.5 billion in new capital since early 2026.
Adoption momentum intensified throughout January’s cryptocurrency market correction. This trend indicates strategic capital rotation into tokenized Treasuries as investors pursued stable returns while maintaining readiness for renewed crypto market participation.
Compared to legacy financial systems, blockchain-native tokens deliver instantaneous settlement capabilities, verifiable reserve transparency, and continuous accessibility — attributes increasingly attractive to institutional participants.
Securitize, BUIDL’s co-issuing partner, had not provided commentary at publication deadline.
As of mid-March 2026, USYC maintains its leadership position within a sector encompassing more than $11 billion in aggregate holdings.
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