Circle’s USYC Surpasses BlackRock’s BUIDL, Becomes Largest Tokenized U.S. Treasury Fund

Circle’s USYC token has overtaken BlackRock’s BUIDL to become the largest provider of tokenized U.S. Treasury exposure, with USYC expanding to about $2.2 billion in supply versus BUIDL’s roughly $2 billion, according to RWA.xyz data.

“Circle overtakes BlackRock in tokenized Treasuries as market hits record $11 billion Circle’s USYC tokenized U”

@coindesk

The shift marks a notable change in market leadership within the emerging tokenized-treasury sector, and reflects competitive pressures that have reduced BUIDL’s market share from a 46% peak in May to about 18% as new entrants grew.

@coindesk

This milestone was reported alongside data attributing USYC’s growth to onchain activity and structural innovations in the space.

Data in the coverage point to Binance’s BNB Chain as a key distribution and utility vector for USYC’s rapid expansion: Binance introduced USYC on BNB as off-exchange collateral for institutional derivatives trading,

Under that arrangement USYC can be held with partner banks through Binance Banking Triparty or with Ceffu, Binance’s institutional custody platform.

CoinDesk

Much of USYC’s supply growth on BNB occurred after the token’s July introduction, where supply on that chain swelled to roughly $1.84 billion, underscoring how exchange-led infrastructure and custodial links can accelerate token adoption.

Analysts and market participants cited in the articles highlight the practical advantages of tokenized Treasury instruments: blockchain-based tokens enable near-instant settlement, transparent reserves and 24/7 accessibility,

“Circle overtakes BlackRock in tokenized Treasuries as market hits record $11 billion Circle’s USYC tokenized U”

@coindesk

They let investors earn interest while simultaneously using those Treasury-backed tokens as collateral in trading strategies—potentially improving capital efficiency versus holding stablecoins or cash.

These functional benefits explain why tokenized Treasuries are being used both as yield-generating collateral and as onchain parking for institutional cash.

The articles trace USYC’s institutional ascent to Circle’s acquisition of Hashnote—the original issuer of USYC—completed in early 2025, and to the alignment of product design with institutional custody and collateral workflows.

Circle’s CEO Jeremy Allaire framed tokenized Treasuries and repo-as-collateral as a “major emerging use case,”

CoinDesk

This signals firm-level strategic support for the product line as the company integrates tokenized Treasury exposure into broader USDC-era infrastructure.

Broader market metrics in the reporting show the tokenized Treasury sector reaching new scale: data cited put the market at a fresh record high of over $11 billion, with roughly $2.5 billion (about 27%) added since the start of the year—figures that contextualize USYC’s growth as part of a wider industry expansion rather than an isolated product success.

“Circle overtakes BlackRock in tokenized Treasuries as market hits record $11 billion Circle’s USYC tokenized U”

@coindesk

The coverage also notes that some issuers, such as Securitize’s BUIDL, did not respond to requests for comment,

@coindesk

This highlights ongoing competition and the fast-evolving issuer landscape.