Key Takeaways
- USYC from Circle has expanded to $2.2 billion in assets, claiming the title of largest tokenized U.S. Treasury product from BlackRock’s BUIDL
- BUIDL’s dominance has eroded significantly, with market share declining from 46% at its zenith to approximately 18% currently
- Binance’s integration of USYC as off-exchange collateral on BNB Chain catalyzed growth, with $1.84 billion now deployed on that blockchain
- Tokenized U.S. Treasury products have reached an all-time high of $11 billion in total value, marking a 27% year-to-date increase
- The sector experienced rapid expansion during January’s cryptocurrency market correction, as capital flowed into yield-generating blockchain assets
In a significant shift within the blockchain-based finance sector, Circle’s USYC token has claimed the top position among tokenized U.S. Treasury products globally, displacing BlackRock’s BUIDL fund from its leading role. This development signals a transformation in the rapidly expanding market for digitizing traditional financial instruments on distributed ledger technology.
With approximately $2.2 billion in total supply, USYC has edged past BlackRock’s USD Institutional Digital Liquidity Fund, which currently stands at roughly $2 billion, based on figures from RWA.xyz.
Circle made its entry into the tokenized asset management sector during the first quarter of 2025 through its strategic acquisition of Hashnote, the company that initially created USYC. This product enables participants to gain exposure to yields from U.S. Treasury securities while maintaining their holdings on blockchain infrastructure.
BlackRock introduced BUIDL during early 2024 through a collaboration with Securitize, a specialized tokenization platform. During its peak performance in May 2024, BUIDL commanded 46% of the entire tokenized Treasury sector. However, that dominance has contracted to roughly 18% amid increasing competition from alternative providers.
Tokenized Treasury products function by converting U.S. government debt instruments into digital tokens residing on blockchain networks. This structure allows participants to generate yield income while simultaneously utilizing these tokens as collateral in trading activities—a capability not readily available through conventional Treasury holdings.
Binance’s Role in USYC’s Explosive Growth
Much of USYC’s remarkable expansion can be attributed to its partnership with Binance. The cryptocurrency exchange incorporated USYC as accepted off-exchange collateral for institutional derivatives transactions on BNB Chain during July 2024.
This arrangement permits USYC to be maintained through Binance Banking Triparty services or through Ceffu, the exchange’s institutional custody solution. Following this implementation, USYC’s presence on BNB Chain has surged to $1.84 billion.
Circle CEO Jeremy Allaire characterized the deployment of tokenized Treasuries as collateral as “a major emerging use case” in a Friday statement posted on X.
The capacity to generate returns while simultaneously employing an asset for trading collateral purposes represents a compelling benefit compared to maintaining stablecoins or fiat currency, which generally produce no income.
Unprecedented Market Expansion
The aggregate tokenized U.S. Treasury marketplace has achieved a milestone valuation exceeding $11 billion, per data from RWA.xyz. This figure reflects a 27% expansion, equivalent to approximately $2.5 billion in additional market capitalization, since the beginning of 2026.
The growth trajectory intensified throughout January’s cryptocurrency market decline. This correlation indicates that certain investors redirected capital toward tokenized Treasury products to secure consistent yields during periods of market volatility.
In contrast to conventional financial systems, blockchain-based tokens facilitate near-instantaneous settlement processes, verifiable reserve backing, and continuous 24/7 accessibility—characteristics that are attracting institutional participation.
Securitize, which serves as co-issuer of BUIDL, had not provided commentary in response to media inquiries at publication time.
As of mid-March 2026, USYC maintains its leadership position within a marketplace encompassing more than $11 billion in combined assets under management.
