Circle’s USYC Dethrones BlackRock BUIDL as Top Tokenized Treasury Product

Key Takeaways

• USYC, Circle’s tokenized Treasury product, has expanded to $2.2 billion in supply, surpassing BlackRock’s BUIDL fund
• BUIDL’s dominance has declined significantly, with market share dropping from 46% at its height to approximately 18%
• A partnership with Binance enabled USYC to serve as off-exchange collateral on BNB Chain, resulting in $1.84 billion deployed on that blockchain
• Tokenized U.S. Treasury products have reached an all-time high of $11 billion in total value, climbing 27% year-to-date
• Market expansion intensified throughout January’s crypto market correction as traders sought yield-generating blockchain-based instruments

In a significant milestone for blockchain-based financial products, Circle’s USYC token has claimed the top position among tokenized U.S. Treasury offerings, displacing BlackRock’s BUIDL fund from its leading role. This development signals an evolution in the rapidly expanding sector focused on bridging traditional finance with distributed ledger technology.

USYC’s total supply has reached approximately $2.2 billion, based on analytics from RWA.xyz. This volume exceeds BlackRock’s USD Institutional Digital Liquidity Fund, which currently maintains around $2 billion in assets under management.

Source: RWA.xyz

The USYC product came under Circle’s control in early 2025 following the company’s acquisition of Hashnote, which originally created the token. This investment vehicle provides holders with access to yields from U.S. Treasury securities while maintaining the benefits of blockchain-based asset management.

BlackRock introduced BUIDL to the market in early 2024 through a collaboration with Securitize, a specialized tokenization platform. During its strongest period in May 2024, BUIDL commanded 46% of the entire tokenized Treasury sector. However, increased competition has reduced that figure to roughly 18% today.

These tokenized Treasury products function by converting U.S. government debt instruments into digital tokens deployed on blockchain infrastructure. This structure enables investors to generate returns while simultaneously leveraging these tokens as collateral for trading activities — a capability that traditional Treasury investments cannot easily provide.

Binance Partnership Drives USYC Expansion

Much of USYC’s impressive recent expansion stems from its integration with Binance. The cryptocurrency exchange incorporated USYC as eligible off-exchange collateral for institutional derivative products on BNB Chain starting in July 2024.

This arrangement permits USYC to be maintained either through Binance Banking Triparty services or through Ceffu, the exchange’s institutional custody solution. Following this integration, USYC’s presence on BNB Chain has surged to $1.84 billion.

In a Friday post on X, Circle CEO Jeremy Allaire described the utilization of tokenized Treasury products as collateral as “a major emerging use case.”

The dual benefit of generating yield while simultaneously deploying an asset as trading collateral represents a substantial advantage compared to maintaining stablecoins or fiat currency, which generally produce no returns.

Market Reaches New Heights

According to data from RWA.xyz, the aggregate tokenized U.S. Treasury sector has achieved an unprecedented valuation exceeding $11 billion. This milestone represents approximately 27% growth, translating to roughly $2.5 billion in additional value, since the beginning of 2026.

Expansion accelerated notably during January’s cryptocurrency market volatility. This trend indicates that certain market participants redirected funds into tokenized Treasury products to secure consistent yields while awaiting more favorable conditions for crypto market re-entry.

Compared to conventional financial systems, blockchain-based tokens deliver near-instantaneous settlement, complete reserve transparency, and continuous availability — characteristics that continue to attract institutional capital.

Securitize, which co-manages the BUIDL fund, had not provided commentary by publication deadline.

As of mid-March 2026, USYC maintains its leadership position within a sector that has now surpassed $11 billion in aggregate holdings.