Circle’s USYC tokenized U.S. Treasury fund has expanded to roughly $2.2 billion, surpassing BlackRock’s BUIDL fund as investors increasingly look to blockchain-based assets for yield and collateral.

The fast-growing tokenized Treasury market now has a new leader.

Circle, the company behind the USD Coin, has emerged as the largest provider of tokenized U.S. Treasury exposure after the supply of its USYC token reached about $2.2 billion, according to data from RWA.xyz.

The growth pushed USYC ahead of BlackRock’s USD Institutional Digital Liquidity Fund, which was launched in collaboration with tokenization firm Securitize and currently manages around $2 billion in assets. BUIDL’s market share has slipped to roughly 18% from a peak of about 46% in May as competition intensifies across the sector.

Tokenized real-world assets such as Treasury bills and money-market funds are attracting growing interest from both crypto traders and institutional investors. These blockchain-based tokens serve as yield-bearing collateral and a place to hold funds onchain while benefiting from near-instant settlement, transparent reserves and continuous market access compared with traditional financial systems.

Treasury-backed tokens also provide an added advantage: investors can earn interest while simultaneously using the assets as collateral in trading strategies, potentially improving capital efficiency relative to simply holding stablecoins or idle cash.

Circle entered the tokenized fund market after acquiring Hashnote, the issuer of USYC, in early 2025.

A representative for Securitize did not respond to a request for comment by press time.

Rapid growth in tokenized Treasuries

Data suggests that much of USYC’s recent expansion has been driven by activity on BNB Chain, where crypto exchange Binance introduced the token as off-exchange collateral for institutional derivatives trading.

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

Since its launch in July, the supply of USYC on BNB Chain has climbed to around $1.84 billion.

“Tokenized treasuries and repo as collateral is a major emerging use case and we are proud of how quickly this has grown,” Jeremy Allaire said Friday in a post on X.

The broader tokenized Treasury market is also expanding quickly, reaching a record value above $11 billion, according to RWA.xyz. The sector has grown by about $2.5 billion, or roughly 27%, since the beginning of the year.

Growth accelerated during January’s crypto market downturn, indicating that some investors may be parking capital in tokenized Treasuries to earn steady yields while waiting for opportunities to redeploy funds into digital assets.