Circle's USYC Captures Lead With $2.2 Billion in Assets
Circle has seized the top spot in the tokenized U.S. Treasury market, with its USYC fund expanding to $2.2 billion in supply. This growth displaces asset management giant BlackRock, whose BUIDL fund now sits in second place with approximately $2 billion in assets. The competitive shift highlights a growing investor appetite for onchain, yield-bearing real-world assets.
The change in leadership has been swift. BlackRock's BUIDL, issued in partnership with tokenization specialist Securitize, has seen its market share contract to just 18% from a peak of 46% in May. This realignment is taking place as the entire sector for tokenized government debt products reached a new record valuation of over $11 billion.
Binance Integration Drives $1.84 Billion in USYC Growth
A strategic partnership with crypto exchange Binance is the primary catalyst behind USYC's rapid ascent. Since Binance introduced USYC as off-exchange collateral for institutional derivatives trading in July, the token's supply on BNB Chain has swelled to $1.84 billion. This structure allows institutional clients to hold the yield-bearing asset with partner banks or Binance’s institutional custody platform, Ceffu, significantly enhancing capital efficiency.
Tokenized treasuries and repo as collateral is a major emerging use case and we are proud of how quickly this has grown.
— Jeremy Allaire, CEO, Circle.
Tokenized Treasuries Grow 27% as Onchain Havens
The broader market for tokenized Treasuries has added approximately $2.5 billion in market value, a 27% increase, since the start of the year. This expansion points to strong demand among crypto traders and institutions for a secure and productive place to park capital directly onchain.
This growth accelerated during January’s crypto market downturn, suggesting investors used these Treasury-backed tokens to earn a steady yield while awaiting opportunities to redeploy funds. Unlike traditional financial instruments, blockchain-based tokens offer near-instant settlement, transparent reserves, and round-the-clock access, improving their utility as collateral in trading strategies.
