Key Highlights
- Circle’s USYC token has expanded to $2.2 billion, claiming the top position among tokenized U.S. Treasury products
- BlackRock’s BUIDL fund has experienced a market share decline from 46% at its highest point to approximately 18%
- Binance integrated USYC as off-exchange collateral on BNB Chain, resulting in $1.84 billion of USYC’s total supply residing on that network
- The tokenized U.S. Treasury market has achieved a record $11 billion valuation, showing 27% growth this year
- Growth intensified during January’s crypto market correction as investors allocated capital to yield-generating onchain products
Circle’s USYC token has claimed the leading position in the tokenized U.S. Treasury product sector, moving ahead of BlackRock’s BUIDL fund. This development represents a significant milestone in the rapidly expanding market for blockchain-based traditional financial instruments.
USYC currently maintains approximately $2.2 billion in supply, based on data from RWA.xyz. This figure places it above BlackRock’s USD Institutional Digital Liquidity Fund, which stands at roughly $2 billion.
Circle entered the tokenized fund sector in early 2025 through its acquisition of Hashnote, the original creator of USYC. The product provides investors with access to U.S. Treasury yields while maintaining assets on blockchain infrastructure.
BlackRock introduced BUIDL in early 2024 through a collaboration with tokenization platform Securitize. During May 2024, BUIDL commanded a 46% portion of the tokenized Treasury market. That portion has subsequently decreased to approximately 18% as additional competitors joined the marketplace.
Tokenized Treasuries function by converting U.S. government debt into digital tokens on blockchain platforms. Investors receive yield while simultaneously utilizing the tokens as trading collateral — a capability traditional Treasury holdings cannot easily provide.
Binance Integration Drives USYC Expansion
A significant portion of USYC’s recent expansion stems from its Binance integration. The exchange incorporated USYC as off-exchange collateral for institutional derivatives trading on BNB Chain in July 2024.
Within this framework, USYC can be maintained through Binance Banking Triparty or through Ceffu, Binance’s institutional custody solution. Following that integration, USYC’s supply on BNB Chain has expanded to $1.84 billion.
Circle CEO Jeremy Allaire described the utilization of tokenized Treasuries as collateral as “a major emerging use case” in a post on X Friday.
The capability to generate yield while simultaneously using an asset as trading collateral presents a compelling advantage compared to holding stablecoins or cash, which generally produce no returns.
Market Reaches Historic Milestone
The tokenized U.S. Treasury market has achieved a historic peak exceeding $11 billion, according to RWA.xyz. This figure represents a 27% expansion, adding approximately $2.5 billion in value, since early 2026.
Expansion accelerated during January’s crypto market correction. This trend indicates some investors redirected capital into tokenized Treasuries to secure consistent returns while preparing to re-engage with the crypto market.
Blockchain-based tokens enable near-instant settlement, transparent reserve tracking, and continuous access — characteristics absent from traditional financial infrastructure that are attracting institutional participants.
Securitize, the co-issuer of BUIDL, did not provide a response to a request for comment by press time.
As of mid-March 2026, USYC occupies the leading position in a market that currently encompasses more than $11 billion in total assets.
