The rapidly growing tokenized U.S. Treasury market has a new leader.
Circle (CRCL), best known as the issuer of the USDC (USDC) stablecoin, has become the largest provider of tokenized Treasury exposure after expanding its USYC token supply to approximately $2.2 billion, according to RWA.xyz data.
This growth has pushed USYC past BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), issued by tokenization specialist Securitize, which currently holds around $2 billion in assets. BUIDL’s market share shrank to 18% from a peak of 46% in May due to increased competition from new entrants.
Tokenized real-world assets such as Treasury bills and money market funds are gaining traction among cryptocurrency traders and institutional investors as collateral for yield generation and as a vehicle to park on-chain cash. Unlike traditional financial infrastructure, blockchain-based tokens allow for near-instant settlement, transparent reserves, and round-the-clock access.
U.S. Treasury-backed tokens also offer an added advantage: They allow investors to earn interest while using the asset as collateral in trading strategies, potentially increasing capital efficiency compared to holding stablecoins or cash.
Circle entered the tokenized fund market in early 2025 after acquiring USYC issuer Hashnote.
Securitize, the publisher of BUIDL, had not responded to a request for comment as of press time.
booming market
A deeper dive into the data suggests that USYC’s recent expansion is largely related to activity on BNB Chain, where cryptocurrency trading giant Binance introduced the token as over-the-counter collateral for institutional derivatives trading.
Under this structure, USYC can be held with partner banks through Binance Bank Tripartite or Binance’s institutional custody platform Ceffu.
Data shows that USYC supply on BNB has grown to $1.84 billion since its launch in July.
“Tokenized Treasury bills and repurchase agreements as collateral is a major emerging use case and we’re proud of how quickly it’s growing,” Circle CEO Jeremy Allaire said in a post published on X on Friday.
The broader tokenized Treasury market is also booming, hitting a new record of more than $11 billion, according to RWA.xyz. Since the beginning of this year, the industry’s market capitalization has increased by approximately $2.5 billion, or approximately 27%.
Growth accelerated during January’s cryptocurrency market downturn, suggesting some investors may be parking their funds in tokenized Treasuries to earn a steady yield while waiting for opportunities to redeploy funds into digital assets.