The market for tokenized U.S. Treasuries has crossed $11 billion for the first time, with Circle's USYC token displacing BlackRock's BUIDL fund as the sector's largest product.

New Market Leader

Circle's USYC token now holds approximately $2.2 billion in assets, making it the largest tokenized Treasury product. BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), issued with tokenization specialist Securitize, holds around $2 billion — down from a peak market share of 46% in May 2025 to roughly 18% today.

Circle entered the space through its early 2025 acquisition of Hashnote, the original USYC issuer. Much of USYC's recent growth is linked to Binance, which introduced the token as off-exchange collateral for institutional derivatives on BNB Chain. USYC supply on BNB has grown to $1.84 billion since July.

Why It Matters

Tokenized Treasury products let crypto investors earn yield on U.S. government debt while keeping assets onchain — usable as collateral, settleable 24/7, with transparent reserves. The structure proved appealing during January's crypto downturn, when investors parked capital in T-bill yields rather than idle stablecoins.

The broader tokenized Treasury market has gained roughly $2.5 billion — about 27% — since the start of 2026, suggesting traditional yield instruments are becoming core infrastructure for onchain finance.

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